BOCA RATON, FL--(Marketwire - February 3, 2011) - Saxena White P.A. has filed a class action lawsuit in the United States District Court for the Western District of Texas on behalf of all investors who purchased Life Partners Holdings, Inc. ("Life Partners Holdings" or the "Company") (
Life Partners Holdings is a specialty financial services company and the parent company of Life Partners, Inc. ("LPI"). LPI is the oldest and one of the most active companies in the United States engaged in the secondary market for life insurance known as "life settlements." LPI facilitates the sale of life settlements between sellers and purchasers, without taking actual possession or control of the policies, by offering purchasers the ability to acquire the policies at a discount to their face value.
The complaint alleges that during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and financial results. Throughout the class period, Life Partners Holdings failed to disclose to investors 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 and appropriate estimated life spans, Life Partners Holdings would not have been able to sell as many policies to investors and earn the additional and increased transaction fees for these insurance policies.
On December 21, 2010, The Wall Street Journal reported that Life Partners Holdings "has made large fees from its life-insurance transactions while often significantly underestimating the life expectancies" of insured individuals. On January 20, 2011, a Company-issued press release confirmed that the Securities and Exchange Commission is conducting an investigation into the business of Life Partners, Inc., causing the stock to close at $12.42, a decline of over 17% from the prior day's closing price of $14.99.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased LPS stock between May 29, 2007 and January 19, 2011, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests:
If you purchased Life Partners Holdings, Inc. shares during the Class Period and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than April 4, 2011. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton, Boston and Montana, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.
Contact Information:
Joseph E. White, III
jwhite@saxenawhite.com
Greg Stone
gstone@saxenawhite.com
Saxena White P.A.
2424 North Federal Highway, Suite 257
Boca Raton, FL 33431
Tel: (561) 394-3399
Fax: (561) 394-3382
www.saxenawhite.com