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Fraud Investigation Into Alleged Deceptive Business Practices of Life Partners Holdings, Inc. Continues, Says Hagens Berman

^{Published on 2011-02-18 21:40:39 - Market Wire}
 

BERKELEY, Calif.--([ BUSINESS WIRE ])--Hagens Berman Sobol Shapiro LLP, a nationally recognized investor-rights law firm, continues to investigate alleged deceptive business practices involving Life Partners Holdings, Inc. (NASDAQ GS: LPHI) shares and insurance policies. A class-action lawsuit has already been filed on behalf of purchasers of LPHI common stock in the U.S. District Court for the Western District of Texas and the deadline to move to be a lead plaintiff is April 4, 2011.

"Investors with significant losses, and who wish to move to be a lead plaintiff should carefully consider the qualifications of counsel who they choose to represent them"

Investors who purchased more than $100,000 worth of LPHI stock between May 29, 2007 and January 20, 2011 (the aClass Perioda) are encouraged to call Hagens Berman partner Reed R. Kathrein at 510-725-3000 for a personal consultation. Eligible investors can also contact the Hagens Berman legal team at [ LPHI@hbsslaw.com ]. A lead plaintiff directs the action and represents those similarly situated.

aWe have prosecuted scores of similar cases on behalf of investors, and based on the meticulous investigation conducted by our team, we believe Life Partners Holdings conduct may have deceived investors and policy holders,a said Mr. Kathrein. aAs our investigation advances, we are interested to speak with witnesses who can provide more details about these claims, and investors who believe that they have been damaged by Life Partners Holdings practices, and holders of fractional interests in the policies who may have documentation.a

aInvestors with significant losses, and who wish to move to be a lead plaintiff should carefully consider the qualifications of counsel who they choose to represent them,a added Mr. Kathrein. aConsult more than one firm to determine their actual knowledge of the facts, the extent of their investigation, their history of success, and reputation in the legal community. Fancy titles and press releases without an actual investigation should be scrutinized.a

Life Partners Holdings, Inc., a Waco, Texas company, is engaged in the secondary market for life insurance, commonly called "life settlements." Life Partners Holdings, Inc. helps investors buy life insurance policies of terminally ill patients and the elderly at a discount of the policies' face value.

Since questions were raised by The Wall Street Journal surrounding the accuracy of the methodology used by Life Partners Holdings, Inc. for its life-expectancy projections, much more information has surfaced. The projections are important because the company can charge investors more for policies that have shorter life expectancies, and therefore faster payouts. If the insured individual's death comes later than estimated, the payout is delayed and investors must continue paying premiums, reducing their eventual returns.

According to our investigation, Life Partners Holdings, Inc. uses a single physician based in Reno, Nev. to provide its life-expectancy estimates. The life-expectancy estimates made by this individual have been called into question by many, some of whom have approached Hagens Berman and the SEC with the results of their findings. Hagens Berman welcomes any additional information by investors, agents or policyholders regarding actual experience with the policies and their performance.

Shares of LPHI dipped by $2.61, or about 17 percent, to $12.43 after Life Partners Holding, Inc. confirmed the SEC investigation and The Wall Street Journal article. Today the stock trades for less than $10 per share. In December 2010, and prior to news articles from The Wall Street Journal, the LPHI stock traded as high as $18.34.

More details of the investigation can be found at [ http://www.hbsslaw.com/LPHI ].

[ About Investor Fraud Practice ]

Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. We have successfully prosecuted hundreds of cases including the recent class-action lawsuit against Charles Schwab & Co, which resulted in a $235 million settlement on behalf of investors. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our [ Meaningful Disclosure blog ].

[ About Hagens Berman ]

Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation with offices in Boston, Chicago, Colorado Springs, Los Angeles, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and [ whistleblowers ]. More information about the firm is available at [ www.hbsslaw.com ].