JG Wentworth’s Shareholders Want Their Money, and They Want It Now

Structured settlement and annuity buyer JG Wentworth, creator of the ubiquitous slogan “It’s my money and I want it now,” finds itself faced with a declining stock price following duplicitous market practices that have caused customers to lose faith in the once industry-leading settlement buying company.

On Tuesday, November 10, 2015, the JG Wentworth stock (NYSE: JGW) took a steep dive after a continuous decline over the past year, dropping 24.4% on news that earnings would be weaker than expected. Earnings per share for the quarter fell drastically short of analysts’ expectations of $2.12, coming in at $1.79. Based on this disclosure, many analysts decreased their price targets for JG Wentworth’s stock and several issued ‘Hold’ or ‘Buy’ ratings.

Public disclosure of JG Wentworth’s misleading practices broke in May 2012, when a lawsuit was filed accusing the company of deceptive trade practices. At issue was the company’s purchase of a competitor, Peachtree, which JG Wentworth then proceeded to market as a separate entity, leading customers who sought competing quotes from each company to believe that the companies were in competition with one another. In 2009, JG Wentworth had filed for bankruptcy due to insufficient capital, which impeded the company from meeting its financial obligations. In 2011, the company purchased Peachtree, which itself was suffering from similar financial woes.

JG Wentworth stockIn a press statement released by the Structured Settlement Institute, a not-for-profit established to educate sellers of structured settlements on fair and equitable practices, an industry source was quoted as saying, “Customers call Peachtree and then they call Wentworth, thinking that they are getting competitive bids. What customers don’t realize is that they are calling the same company…they work cooperatively, collectively and out of the same office to ensure the customer gets the least value for their future payments.” In some cases, JG Wentworth went as far as trying to block customers from discussing settlement options with competitors, a move that prompted RSL Funding to take the matter to court, with a Texas court ruling awarding RSL Funding the right to offer former JG Wentworth clients more money for their settlements.

Commenting further, the source added that, “Doing business with Wentworth or Peachtree means you are dealing with a single company that has not been able to meet its financial obligations in recent years…Finding a company that has both the financial resources and the desire to deal with you honestly and honorably is essential.”

The recent drop in JG Wentworth’s stock price is indicative of consumers and investors’ waning faith in the company’s ability to meet its financial obligations. Ironically, a company that marketed itself as able to deliver customers their money when they want it is now coming up short on its ability to do so. Not only is this leaving shareholders high and dry, but also JG Wentworth’s customers, who put their faith and trust in the company to act in their best financial interests.

When you cash in annuity or structured settlement payments, it’s not an easy decision! The repercussion of such a sale will impact the seller for many years, possibly for life, whether for better or worse. When entrusting such important financial matters to a structured settlement or annuity buyer, customers have the right to demand a fair and transparent process that represents their best interests. It is hard to fathom that a company that cannot successfully manage its own financial affairs would be able to successfully manage those of its customers.

The message for sellers of structured settlements or annuities is simple: Work with a company you can trust. In the structured settlement industry, reputation is key and working with a company that holds itself to a higher standard will result in better financial decision-making and a higher payout. RSL Funding has been an industry leader in pushing for fairer, more transparent competition within the structured settlement industry and always places the interests of its customers first.

If you’re tired of dealing with unscrupulous companies that overpromise and misrepresent their intentions through advertising, contact RSL Funding today at web_phone or request a quote online to speak with a representative that will place your financial interests first and help you make the best decision for your future.


Langley, J. (2015, November 10). JG Wentworth Stock Price Down 24.4% Following Weak Earnings (JGW). Dakota Financial News. Retrieved November 13, 2015, from http://www.dakotafinancialnews.com/jg-wentworth-stock-price-down-24-4-following-weak-earnings-jgw/638887/


JG Wentworth Sued For Deceptive Trade Practices. (2012, May 17). Retrieved November 13, 2015, from http://www.prnewswire.com/news-releases/jg-wentworth-sued-for-deceptive-trade-practices-151864745.html
Call Now Button