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Glancy Binkow & Goldberg LLP, Representing Investors of Life PartnersHoldings, Inc., Announces Class Action Lawsuit and Seeks t

^{Published on 2011-02-05 10:20:47 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Western District of Texas on behalf of a class consisting of all persons or entities who purchased the securities of Life Partners Holdings, Inc. (aLife Partnersa or the aCompanya) (Nasdaq:LPHI) between May 29, 2007 and January 20, 2011, inclusive (the aClass Perioda).

"made large fees from its life-insurance transactions while often significantly underestimating the life expectancies of people whose policies its customers invest in."

A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].

Life Partners, through its subsidiary, Life Partners, Inc., operates in the secondary market for life insurance generally known as alife settlements.a Life settlement transactions involve the sale of an existing life insurance policy to another party a" the policyholder receives an immediate cash payment; the purchaser takes an ownership interest in the policy and receives an ownership interest in the policya™s death benefit when the insured dies.

The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that, among other things: (1) the Company routinely used life expectancy data that produced inaccurately short life expectancy reports, which were subsequently used to sell life settlement policies to investors; (2) the Company concealed the historical rate at which individuals insured by life settlement policies sold by Life Partners had lived past the life expectancy rates previously provided to investors, such that the Companya™s investors were unable to assess the accuracy or reliability of such data; (3) by underestimating life expectancy data to investors, the Company was able to charge substantially larger fees when brokering life settlement policies; (4) as a result, the Companya™s financial statements were false and misleading at all relevant times; and (5), as a result of the foregoing, the Companya™s statements about its financial performance and future business prospects were lacking in any reasonable basis when made.

On December 21, 2010, The Wall Street Journal published an article questioning the Companya™s life-expectancy estimates and business practices, noting that Life Partners amade large fees from its life-insurance transactions while often significantly underestimating the life expectancies of people whose policies its customers invest in.a On January 20, 2011, the newspaper published an article disclosing that the Securities and Exchange Commission was investigating Life Partnersa™ business practices related to how it estimated life expectancies of insured individuals whose life insurance-policy rights the Company was selling. Later that same day, the Company confirmed the SEC was investigating the business of its operating subsidiary, Life Partners, Inc.

As a result of this news, shares of Life Partners declined by $2.58 per share, more than 17%, to close on January 20, 2011, at $12.46 per share, on unusually high volume, and further declined another $0.64 per share, to close on January 21, 2010, at $11.82 per share, also on unusually high trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than April 4, 2011, to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224, by e-mail to [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].