WACO CO. FACES VIATICAL SUIT

A Waco-based company offering viatical settlements is the focus of an investors’ class action suit filed by an Oklahoma City attorney. The suit was filed against Life Partners by William Federman, who believes the investments are a bad deal, especially for the elderly who often die before the terminal patients selling their policies.

The problem has worsened, Federman said, since improved AIDS and cancer treatments have been developed. The lawsuit was filed in McLennan County Court, with Bobbie Griffits of Oklahoma City named as the lead plaintiff. The lawsuit claims the sale of viatical contracts is essentially security, and Life Partners is selling the contracts without registered sales people.