Life Partners Holdings, Inc. is a Waco, Texas-based company that offers a type of financial investment known as a life settlement agreement. Life settlements are life insurance policies which are sold by their owner to another individual or company for a cash settlement that is less than the face value of the policy.
Since it entered the business, the purchase and sale of life insurance settlements has been extremely profitable for Life Partners. Between 2008 and 2009, the company facilitated the sale of life insurance policies totaling more than $1 billion in combined value.
However, several lawsuits against Life Partners have raised questions about the way in which the company represented these investments. The company is currently facing lawsuits filed by the Securities and Exchange Commission, the Texas attorney general’s office, and class action lawsuits filed by investors which allege that Life Partners misled investors about the value of its life settlement agreements.
According to these lawsuits, Life Partners fraudulently misled investors about the life expectancies of the individuals covered by life insurance settlements offered through the company. Life Partners allegedly hired a doctor in Nevada to provide life expectancies for life settlements sold through the company that were shorter than the actual life expectancies of the insureds. According to lawsuits on file, because life settlements are more valuable when the death benefit of the policy is expected to be paid out sooner, these fraudulent life expectancies made Life Partners’ life settlements appear to be more valuable than they actually were.
Executives with Life Partners have also been accused of securities violations in connection with the pricing of these life settlements. According to the SEC lawsuit, the company’s executives engaged in an illegal accounting scheme by manipulating the value of these fraudulent life expectancies and making the company—and thus its stock price—appear more valuable than it actually was.
Allegations contained in the numerous lawsuits filed against Life Partners have dealt a significant blow to the company’s bottom line. The value of Life Partners stock has fallen precipitously since its September 2007 high of over $52 to less than $3 as of 2012.
Attorneys with the law firm of Heygood, Orr & Pearson have filed lawsuits on behalf of investors nationwide asserting that Life Partners misled them about the value of life settlement agreements they purchased through Life Partners. Investors who purchased a life settlement agreement through Life Partners may still be eligible to join one of the cases that has already been filed against the company, or they may be eligible to file their own case.
For a free legal consultation and to find out if you may be entitled to recover damages from Life Partners, contact the lawyers at Heygood, Orr & Pearson. You can reach us by calling toll-free at 1-877-446-9001, or by completing the free case evaluation form located on this page.