SOURCE: Izard Nobel LLP

February 08, 2011 16:54 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Life Partners Holdings, Inc.

WEST HARTFORD, CT--(Marketwire - February 8, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Texas on behalf of purchasers of the common stock of Life Partners Holdings, Inc. ("Life Partners" or the "Company") (NASDAQ: LPHI) between May 29, 2007 and January 19, 2011, inclusive (the "Class Period"). 

The Complaint charges Life Partners and certain of its officers and directors violated federal securities laws by issuing materially false statements regarding the Company's business results. Specifically, Life Partners failed to disclose that it was shortening the estimated life expectancies of insured individuals. As a result, the Company was making the policies covering these individuals more attractive to potential investors, as the potential "payout" from the policies maturing (when the insureds died) would occur in a shorter period of time. Had the Company used accurate estimated life spans, it would not have been able to sell as many policies to investors and earn the additional and increased transaction fees for these policies.

On December 21, 2010, The Wall Street Journal reported that Life Partners "has made large fees from its life-insurance transactions while often significantly underestimating the life expectancies" of insured individuals. On January 20, 2011, Life Partners confirmed an SEC investigation of Life Partners. On this news, the stock fell $2.58 to close at $12.46.

If you are a member of the class, you may, no later than April 4, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/lifepartners/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

Contact Information