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TexasCourtsAgainRejectImperialFinance’sAnti-CompetitiveActs
Texascourts1haveonceagainrejectedImperialFinance’scontinuedattemptstostiflecompetitionandharmconsumers.
Houston,TX,April25,2012--Texascourts1haveonceagainrejectedImperialFinance’scontinuedattemptstostiflecompetitionandharmconsumers.ATexascourtthismonthslammedforthefifthtimeImperial’santi-consumerattemptstoprohibitcustomersfromsellingtheirstructuredsettlementstopersonsotherthanImperial.Imperialsoughttoprohibititscustomersfromreceivingcompetitivebids,requiringthemtoacceptlowballoffersfromImperial.ImperialHoldings,Inc.(NYSE:IFT),thepublicly-tradedparentcompanyofstructuredsettlementfactoringfirm,ImperialFinanceandTrading,hasbeenunsuccessfullyurgingthecourtssince2010thatonceitsignsupacustomer,Imperialwasprotectedfromcompetitorsmakingbetteroffers,claimingsomeformofexclusivity.Imperialusedthisargumenttosupportitscontinuedoverchargingconsumers,despitebeingcitedbycourtsforchargeswhichwerenot“fairandreasonable”2.
InanunprecedentedfifthrequestaskingTexascourtstosupportitsposition,aTexastrialcourtearlierthismonthagainrejectedImperial’sarguments,tellingitslawyersthatthecourt spositionwasunchangedandthatanyonecouldbidforthepurchaseofstructuredsettlementpayments.TheargumentsofL.BradleyHancockofGreenberg,Traurig’sHoustonofficewereagainrejected.IndustrysourceshavereportedthattheGreenberglawfirmhasreceivedmorethan$1millioninfeesinunsuccessfulattemptstostiflecompetitiononbehalfoffactoringindustryparticipants,includingJ.G.WentworthanditsPeachtreeSettlementFundingaffiliate,inadditiontoImperial.IndustrysourceshavealsoreportedthattheGreenberglawfirmencouragedthesefactoringcompaniestotaketheseotherwiseuntenableactionswiththecourts,whichresultedinextraordinaryfeesearnedbythem.Greenberg,Traurig,whichitselfisnotfreeofcontroversyhavingseenseveralofitspartnersindictedinthepastoverbillingissuesandhavingpaidmulti-milliondollarfines,3andL.BradleyHancockhavebeenmakingsimilarallegationsinothercourts,sofarwithoutsuccess.
Texascourtshavecontinuedtoupholdtheannuityrecipient srighttocontinueseekingcompetitiveoffers.AccordingtoStewartFeldman,CEOofcompetitorRSLFunding,LLC:"Imperialhasbeenclaimingthatithasanenforceablecontractwheninfactitdoesnot.TheallegationsofImperial’sdeceivingcustomerscarrythroughtomultiplelinesofbusinessofImperial.Imperialhaslongusedthisthreattounderpaysellersofstructuredsettlementsfortheirfuturepayments.”
“Forthefifthtime,TexascourtsagainthismonthconfirmedthatImperial scompetitorscanvieforsellersofannuitiesandprovidecompetitiveoffersthatareclearlyinthecustomers’bestinterest,”commentedPaulMcHugh,VicePresidentofSalesandMarketingforRSLFunding.“RSLFundingwillcontinuetoactivelypursueownersofstructuredsettlementpaymentstomakecompetitiveoffers,leavingthecustomersandthecourtstoultimatelydecidewhetheritisinthepayees bestinteresttoreceivemoremoneythanless,”saysMcHugh.
TherulingbytheTexascourtonApril2,2012comesontheheelsofaTexasappellatecourtruling4strikingdownanattemptbyindustrycompetitorPeachtree,anaffiliateofJLLPartners ownedJ.G.Wentworth,whichhasthwartedPeachtree sattempttoimproperlystiflecompetition.IndustrysourcesreportthatJ.G.Wentworth’srushtogopublic,expectedforthiscomingfall,mayberelatedtothecontinuedfallindiscountrateswhichmanybelievewillacceleratewiththeincreasedindustrycompetitionfollowingthecourts’rulings.IndustrycompetitorImperialhasseenitsstockpricefall82%lastyear,earningaspotasthesecondworstIPOoftheyear,accordingtoCNBC5.AdvancewarningstoinvestmentbankerFBRhadgoneunheeded.
Forfurtherinformation,contacttheStructuredSettlementInstitute(SSI),anot-for-profitorganizationestablishedtoeducatesellersofstructuredsettlementsregardingfairandequitablepracticesamongprovidersofstructuredsettlementtransfers.
Contact:StructuredSettlementInstitute,BoyntonBeach,FL,1-800-409-1975
Contact:PaulMcHughRSLFunding,LLCTwoPostOakCentral1980PostOakBlvdSuite1900,Houston,[email protected]://www.rslfundingllc.com
