Life Partners Holdings, Inc. has been cleared of allegations by Texas state securities officials that it did not register life settlement transactions as securities under state law.
The court declined to stop Life Partners Holdings from selling its life insurance settlement policies, as well as rejecting a demand from the State Securities Board to halt payment of any dividends to Life Partner shareholders.
The complaint by the Texas attorney general on behalf of the Texas State Securities Board alleged that Life Partners had sold shares in policies to about 29,000 investors nationwide. The complaint alleged that investors had entrusted more than $1.5 billion to the firm.
The Texas Securities Board warned in the complaint that the declining financial situation could result in the lapse of policies, "which would cause investors to lose their entire investment."