NEW YORK, NY--(Marketwire - February 14, 2011) - Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for Western District of Texas on behalf of those who purchased or otherwise acquired stock of Life Partners Holdings, Inc. ("Life Partners" or the "Company") (
The Complaint alleges that Life Partners made false and/or misleading statements and failed to disclose that, among other things: (1) that the Company had routinely used unrealistic life expectancy data that produced inaccurate short life expectancy reports, which were subsequently used to sell life settlement policies to investors; (2) that Life Partners had purposely concealed the historical rate in 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 Company's investors were unable to assess the accuracy or reliability of such data; (3) that by underestimating life expectancy data to investors, the Company was able to charge substantially larger fees when brokering life settlement policies; and (4) that the Company's revenues had been significantly increased through the employment of such business practices.
On January 20, 2011, Life Partners confirmed the SEC was investigating the business of its operating subsidiary, Life Partners, Inc. As a result of this news shares of Life Partners plummeted more than 17%, a decline of $2.58 per share, to close at $12.46 per share on unusually high trading volume. Since then, shares of Life Partners have continued to decline and are currently trading around $8.35 a share.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. April 4, 2011 is the deadline for investors to seek a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.
Contact Information:
Peretz Bronstein
or
Eitan Kimelman
Bronstein, Gewirtz & Grossman, LLC
212-697-6484