Life Partner Holdings, Inc. (NASDAQ: LPHI)
Hagens Berman has filed a lawsuit against Life Partner Holdings, Inc. (NASDAQ GS: LPHI) on behalf of investors in the company.
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.
On January 20, Life Partners Holdings Inc. confirmed in a company press release that federal regulators were investigating the insurance company. The company’s confirmation followed The Wall Street Journal article entitled, “SEC Probes Company Over Life-Span Data,” which reported that the Securities and Exchange Commission was looking into the way the company estimates the life expectancies of insured individuals.
In an earlier story published on December 21, 2010, The Wall Street Journal had also questioned the company’s life expectancy projections. The article, “Odds Skew Against Investors in Bets on Strangers' Lives,” indicated that Life Partners Holdings, Inc. may have “made large fees from its life-insurance transactions while often significantly underestimating the life expectancies of people whose policies its customers invest in.”
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. In December 2010, and prior to news articles from The Wall Street Journal, the LPHI stock traded as high as $18.34.
The lawsuit asks the court to award investors relief for their losses suffered as a result of LPHI's alleged illegal activities.
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