Abacus Global Management, Inc. (ABL) Investigation

Abacus represents itself as a “leading” financial services company specializing in alternative asset management, data driven wealth solutions, technology innovations, and institutional services. Under relevant accounting rules, Abacus is required to report the value of its assets in conformity with generally accepted accounting principles, which the company has consistently assured investors that it has.

Abacus’ assurances may have come into question on June 4, 2025, when Morpheus Research published its initial report, alleging that Abacus was engaged in an "accounting scheme" within its life settlements portfolio. The report claimed Abacus manufactured "fake revenue" by aggressively using "mark-to-model" accounting and systematically underestimating the life expectancies of insured individuals. Morpheus further highlighted Abacus's reliance on Lapetus Solutions for life expectancy estimates, suggesting these calculations were questionable and that former employees and industry experts had raised concerns about their accuracy, contributing to an overvaluation of the company's assets.

The information revealed in the initial Morpheus report caused Abacus Global’s shares to decline over 20% decline in a single trading day.

On June 10, 2025, Abacus published its purported rebuttal of Morpheus’ June 4, 2025 forensic report and primarily reported that it retained an independent actuarial firm (Lewis and Ellis) who “has maintained a sterling reputation” to vet the company’s balance sheet in an effort to debunk Morpheus’ conclusions.

But, on June 12, 2025, Morpheus issued a second follow up report, asserting that Abacus’s rebuttal to the initial claims was inadequate and contradictory to its own SEC filings. The follow report significantly escalated its allegations by presenting what Morpheus claimed was new evidence of undisclosed related-party dealings involving Abacus insiders and raising concerns about "Carlisle Round-Tripping Policies," thereby intensifying the scrutiny on the company's financial practices. Morpheus also cast doubt on Abacus's assertion that third-party validator Lewis & Ellis corroborated its valuations, noting Lewis & Ellis’ prior involvement with another fund that faced lawsuits over flawed valuations and highlighting that Lewis & Ellis had previously relied on inputs provided by the fund itself.

These events caused the price of Abacus shares to decline sharply.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the ABL investigation about?

We are investigating whether Abacus may have misled investors about its asset values and, more recently, about the independence of Lewis and Ellis who purportedly vetted the company’s asset valuations.

WHAT SHOULD I DO?

I worked at ABL. What should I do?

If you were an employee of ABL, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in ABL, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any ABL investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.