Life Partners, Inc. v. Arnold

The primary issue in these two separate cases is whether a “life settlement agreement” or “viatical settlement agreement” is , an “investment contract” and thus a “security” under the Texas Securities Act. We hold that the agreements at issue are investment contracts because they constitute transactions through which a person pays money to participate in a common enterprise with the expectation of receiving profits, under circumstances in which the failure or success of the enterprise and the person’s realization of the expected profits, is at least predominately due to the entrepreneurial or…