Alleged Securities Case Against Life Partners Ruled Frivolous by Texas District Court
Life Partners Holdings, Inc. (Nasdaq: LPHI) announced today that a Texas state court has determined that a legal case filed against its subsidiary, Life Partners, Inc., for purported violations of the securities registration provisions and for securities fraud under the Texas Securities Act was frivolous.
The 14th Judicial District Court of Dallas County, Texas ruled that the case brought by Plaintiffs Michael and Janet Arnold, the South Living Trust, Dr. John S. Ferris and Christine Duncan against Life Partners, Inc. was “frivolous and without basis in fact or in law.” Previous courts have held that the life settlements facilitated by Life Partners are not securities under either the federal securities laws or under the Texas Securities Act. The Court had previously dismissed Plaintiffs' claims by summary judgment.
Before hearing testimony on the amount of sanctions to be paid to Life Partners, the Court ordered the parties to mediation to see if they can agree on how much the Plaintiffs must pay.
