Life Partners Holdings Inc. Stock Rises After Austin Court Decision

I previously blogged about a ruling ordering Life Partners to stop selling unregistered securities.  Recently, an Austin court ruling tossed out Texas Attorney General’s case against Life Partners Holdings Inc. for alleged illegal trading in securities. As a result, shares in the company went up 150%.  Now Life Partners can distribute a previously announced 10 cents a share dividend that had to be put on hold because of the case.  

Life Partners Holdings Inc. is not completely in the clear yet.  The Texas Attorney General (AG) says he will appeal the case and pointed out that the SEC is bringing a separate suit against the company in January. The Texas AG and the SEC claim that Life Partners bought policies from the elderly and terminally ill, and then withheld estimates of life expectancies from potential investors who bought fractions of the policies. 

The CEO of Life Partners claims that they do not defraud or deceive anyone.  He goes on to say that the Texas AG was using press releases and the suit to further baseless claims of fraud and a lack of regulation.

See Barry Shlachter, Life Partners Stock Climbs After Court Ruling In Austin, Star-Telegram, Sept. 26, 2012.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this blog to my attention.