Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Settlement Firm Settles Suit

By Trevor Thomas

X
Your article was successfully shared with the contacts you provided.

A life settlement firm has agreed to pay $1.25 million in stock to settle a lawsuit filed by an investment firm.

The life settlement firm, Life Partners Holdings Inc., Waco, Texas (Nasdaq:LPHI), reached the settlement agreement with Maxim Group L.L.C., New York.

Life Partners agreed to deliver to Maxim 56,230 shares of its common stock valued at $22.23 per share, according to a document Life Partners filed with the U.S. Securities and Exchange Commission. The company delivered the shares after the U.S. District Court for the Southern District of New York concluded a fairness hearing on the settlement April 13, according to the filing.

Maxim filed suit Sept. 17, 2007, according to Life Partners’ 2008 annual report. Maxim alleged that Life Partners had agreed in 2004 to issue a warrant for 100,000 shares of common stock to Maxim, exercisable within 5 years at a price of $7 per share.

Life Partners contended in court that the warrant was for investment banking services Maxim never actually performed, and that Life Partners owed Maxim nothing, according to Life Partners’ annual report.

Life Partners says in the SEC filing that the cost of settlement will be accrued in its consolidated financial statements as of Feb. 28, 2010, and that it will reduce its previously reported fiscal year 2010 earnings by $812,500. The settlement cost will have no effect on Life Partners’ cash position, according to the filing.

A spokesman for Maxim declined to comment on the settlement.

Representatives from Life Partners were not immediately available to comment.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.