The Houston Business Journal has reported that Texas appeals court has dissolved and reversed a temporary injunction against the RSL Funding LLC which had prevented it from competing for Peachtree Settlement Funding’s U.S. clients.
Peachtree, now JGWPT, aka J.G. Wentworth, had accused the Houston structured settlement factoring company of offering its customers more money for their annuities. RSL admitted they did offer their clients more money therefore the trial judge sided with Peachtree thereby preventing RSL from competing in the secondary marketplace.
The decision was reversed by a Texas appellate court because the ruling was “an unreasonable restraint on trade.” This reversal should help other factoring companies when they compete against industry giant J.G. Wentworth/Peachtree in the future.
While RSL may have won this court case, they still have other pending legal issues. Last week MN District Judge, Robert Blaeser ordered the company to comply with an investigation by the state attorney general’s office into their business practices. Blaeser ruled that RSL has 15 days to respond to the attorney general’s demand for information.
Peachtree Financial merged with J.G. Wentworth in July and had lain off 90% of its Boynton Beach, Florida location. The remaining 10 percent were offered positions at J.G. Wentworth’s Radnor, PA based corporate headquarters.