Leading medical negligence lawyers have warned that funds from some lump sum court awards invested in Irish bank shares are now effectively worthless.
News has cropped up that funds from some lump sum court awards for catastrophic birth injuries have been invested in an Irish bank, and those funds are effectively worthless. An attorney looking into the affair said he has become aware of cases where investments were made by the Wards of Court Office in what were believed to be blue chip equities.
Because of the fraud, the future rate of return for the lifetime of the injured plaintiff is sure to be adversely effected. With the average award for a catastrophic birth injury around €4m to €5m, the effects will definitely be felt.
According to a doctor who practices in Long Island as well as Manhattan, he is favoring a change in the law allowing for annual payments to be made to medical negligence victims over their lifetime, so that awards will no longer run the risk of being unnecessarily high, and will still be enough to last a lifetime. It is usually not the wisest choice to take a lump sum payment if an annual index-linked payment is offered alternatively.
With the anticipated change in the law, a study reports, many catastrophic injury cases including skull fractures are being put on hold for up to two years.
Some parents have invested one-time lump sum awards into bank shares, believing their money to be safe, but have seen those investments almost wiped out. The money that is most families only way to ensure their child is properly cared for is gone.
For the most part, the Court Funds Investments have said that court service figures actually show that the investment of court funds for Wards of Court and Minors has increased over the seven years since they were invested. Since June of 2006, the cash funds have increased in value by 10.63%. Since December 2003, four other types of fund have increased as well, by between 18.82% and 43.49% – despite the difficult financial period. The Cash Plus fund saw an increase of 18.82%, the Bond Plus Funds increased by 33.09%, the Balanced Funds by 37.93% and the Growth Funds by 43.49%.
While it can be scary to figure out what to do with lawsuit award money, a New York Birth Injury Attorney can help ensure that you actually receive the compensation to help with your child. If needed, they can also help point you in the right direction for sound financial advice.