SAN FRANCISCO, Calif.--(BUSINESS WIRE)--The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP reminds investors of the upcoming April 4, 2011 deadline to move for appointment as lead plaintiff in pending securities class action lawsuits against Life Partners Holdings, Inc. (“Life Partners” or the “Company”) (Nasdaq: LPHI). The actions are brought on behalf of all persons who purchased or acquired the securities of Life Partners between May 29, 2007 and January 20, 2011, inclusive (the “Class Period”).
Life Partners shareholders who wish to learn more about the actions and how to seek appointment as lead plaintiff may visit Lieff Cabraser’s website at http://www.lieffcabraser.com/cases.php?CaseID=448 or contact Sharon Lee toll free at (800) 541-7358. In addition, investors who purchased Life Partners policies may also contact Lieff Cabraser to review their claims.
Background on Life Partners Securities Class Litigation
The securities class actions, pending in the United States District Court for the Western District of Texas, were brought against Life Partners and certain of its officers and directors for violations of the Securities Exchange Act of 1934. Life Partners, headquartered in Waco, Texas, describes itself as a financial services company and the parent company of Life Partners, Inc. which engages in the secondary market for life insurance known generally as “life settlements.” Life Partners facilitates life settlement transactions which involve the sale of existing life insurance policies to purchasers who receive the death benefits under a policy when the insured dies.
The actions alleges that during the Class Period, defendants made material misrepresentations and omissions regarding Life Partners’s business and prospects. Specifically, defendants allegedly failed to disclose: (1) that Life Partners routinely used unrealistically short life expectancy estimates for life settlement policies it sold to investors; (2) that a significant number of individuals insured by policies sold by Life Partners lived beyond the life expectancy estimates provided to investors; (3) that by underestimating the life expectancy rates, Life Partners was able to charge investors large fees for brokering the life settlement policies and, thereby, significantly increase its revenues; (5) that, as a result, the Company's financial statements were false and misleading at all relevant times; and (6) that the Company lacked adequate internal and financial controls.
On December 21, 2010, The Wall Street Journal published an article on its investigation into Life Partners’s life-expectancy estimates and business practices. The Journal noted that Life Partners “has made large fees from its life-insurance transactions while often significantly underestimating the life expectancies of people whose policies its customers invest in.” On January 20, 2011, the Journal reported, and the Company subsequently confirmed, that the SEC was investigating Life Partners concerning its life expectancy estimates. On this news, the price of the Company’s common stock fell $2.58 per share, or more than 17 percent, to close at $12.46 per share on January 20, 2011, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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