Both sides are claiming victory after a jury rejected the U.S. Securities and Exchange Commission’s core claims in a fraud case against Waco, Texas–based Life Partners Holdings Inc. The SEC called the verdict a partial win, but defense lawyers say the agency is just trying to put a positive spin on the latest in a string of trial losses.
Siding with Baker & McKenzie and Patton Boggs in verdict delivered late Monday, a federal jury in Austin rebuffed the SEC’s claim that a trio of Life Partners executives violated Section 10(b)5 of the Securities Exchange Act by systematically underestimating a key accounting figure. The jury also rejected claims that the Life Partners execs violated Section 10(b)5 by engaging in insider trading. (Here’s the verdict form.)
