BENSALEM, Pa., Feb. 24, 2011 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith, representing investors of Life Partners Holdings, Inc., announces an April 4, 2011, deadline to move to be a lead plaintiff in the class action lawsuit filed on behalf of all purchasers of the securities of Life Partners Holdings, Inc. ("Life Partners" or the "Company") (Nasdaq:LPHI) between May 29, 2007 and January 20, 2011, inclusive (the "Class Period"). The shareholder lawsuit is pending in the United States District Court for the Western District of Texas.
The Complaint charges Life Partners and certain of the Company's executive officers with violations of federal securities laws. Life Partners, through its subsidiary, Life Partners, Inc., operates in the secondary market for life insurance generally known as "life settlements." The Complaint alleges that defendants misrepresented and/or failed to disclose that, among other things: (1) the Company routinely used life expectancy data that produced inaccurately short life expectancy reports, which were subsequently used to sell life settlement policies to investors; (2) the Company concealed the historical rate at which insured individuals had lived past the life expectancy data previously provided to life settlement investors, such that the Company's investors were unable to assess the accuracy or reliability of such data; (3) as a result, the Company's financial statements were false and misleading at all relevant times; and (4), as a result of the foregoing, the Company's statements about its financial performance and future business prospects were lacking in any reasonable basis when made.
On January 20, 2011, The Wall Street Journal reported the Securities and Exchange Commission was investigating Life Partners' business practices related to how it estimated life expectancies of insured individuals whose life insurance-policy rights the Company was selling. Later that day, the Company confirmed the SEC was investigating its operating subsidiary, Life Partners, Inc. As a result of this news, shares of Life Partners declined by $2.58 per share, more than 17%, to close on January 20, 2011, at $12.46 per share, on unusually high volume.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Life Partners securities between May 29, 2007 and January 20, 2011, you have certain rights and have until April 4, 2011, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to howardsmith@howardsmithlaw.com or visit our website at http://www.howardsmithlaw.com.
CONTACT: Law Offices of Howard G. Smith Howard G. Smith, Esquire (215) 638-4847 (888) 638-4847 howardsmith@howardsmithlaw.com www.howardsmithlaw.com