Case Page

 

Case Status:    ONGOING    
On or around 09/19/2014 (Ongoing date of last review)

Filing Date: February 03, 2011

According to a press release dated February 3, 2011, 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.

As summarized by the Company's FORM 10-K for the fiscal year ended February 28, 2011, in February and March of 2011, six putative securities class action complaints were filed in the U.S. District Court for the Western District of Texas, Waco Division. The first-filed of these is styled Gerald A. Taylor, Individually and On Behalf of All Others Similarly Situated v. Life Partners Holdings, Inc., Brian D. Pardo, Nina Piper, David M. Martin, and R. Scott Peden, Civil Action No.: 2:11-CV-0027-AM. On March 17, 2011, the Court issued an Amended Order of Transfer, recusing Judge Walter S. Smith from the six cases and transferring the cases to the Del Rio Division of the Western District. On July 5, 2011, these actions were consolidated into the case styled Selma Stone, et al. v. Life Partners Holdings, Inc. ..., Civil Action No. DR-11-CV-16-AM. The Consolidated Complaint for Violations of the Federal Securities Laws was filed on August 15, 2011, asserting claims of securities fraud under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and for control person liability under Section 20(a). The plaintiffs allege, among other things, that we failed to disclose or misrepresented information about the accuracy of life expectancy estimates on which the price of the life settlements and the fees earned by LPI were purportedly based. The plaintiffs further allege that these practices resulted in false and misleading financial statements and reflected a lack of adequate internal and financial controls. The plaintiffs seek damages and an award of costs on behalf of a class of shareholders who purchased or otherwise acquired our common stock between May 29, 2007, and June 17, 2011. On September 29, 2011, defendants filed their Motion to Dismiss the Complaint seeking dismissal of all the plaintiffs’ claims. Defendants intend to vigorously defend the allegations in the suit, including opposing certification of a purported class. All discovery in the case is stayed pending a ruling on the Motion to Dismiss. No trial date has been set.

On February 10, 2012, the Plaintiffs filed an amended complaint.

On September 17, 2014, the Court issued an Order staying this case.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Miscellaneous)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: LPHI
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Texas
DOCKET #: 11-CV-00016
JUDGE: Hon.Walter S. Smith
DATE FILED: 02/03/2011
CLASS PERIOD START: 05/29/2007
CLASS PERIOD END: 01/19/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Office of Roger F. Claxton
    10,000 North Central Expressway, Suite 725, Law Office of Roger F. Claxton, TX 75231
    214.969.9029 (214) 953-0583 ·
  2. Saxena White PA (Boca Raton)
    2424 N. Federal Highway, Suite 257, Saxena White PA (Boca Raton), FL 33431
    561.394.3399 561.394.3399 ·
No Document Title Filing Date
COURT: W.D. Texas
DOCKET #: 11-CV-00016
JUDGE: Hon.Walter S. Smith
DATE FILED: 08/15/2011
CLASS PERIOD START: 05/29/2007
CLASS PERIOD END: 06/17/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman Sobol Shapiro LLP (Berkeley)
    715 Hearst Avenue, Suite 202, Hagens Berman Sobol Shapiro LLP (Berkeley), CA 94710
    510.725.3000 510.725.3000 · info@hbsslaw.com
  2. Hagens Berman Sobol Shapiro LLP (New Seattle)
    1918 Eighth Ave. Suite 3300, Hagens Berman Sobol Shapiro LLP (New Seattle), WA 98101
    206.623.7292 206.623.0594 ·
No Document Title Filing Date
No Document Title Filing Date