Life Partners has cleared all allegations of fraud alleged by the Securities and Exchange Commission (SEC) after an Austin Federal Court passed a ruling that the commission could not prove any of the claims against the insurer and its executives.
The latest ruling comes on the heels of a jury finding in February which stated that neither Life Partners, nor its CEO Brian Pardo and General Counsel Scott Pede committed the securities fraud under Rule 10b-5.
It also said that the executives did not engage in any insider trading.
The earlier ruling, in which the jury had found in favor of the SEC’s claim under Section 17(a) concerning the company’s revenue recognition policies, was challenged by Life Partners.
The US District Court for the Western District of Texas, Austin Division has now agreed with Life Partners that there was no evidence to support the revenue recognition claims.