Court Unseals Key Evidence in Coventry Case, Revealing Abacus Global Management Relied on Low Lapetus Life Expectancy Estimates and Misled Investors

GlobeNewswire··US·Read original
2▲0 ▼1Impact / 5
Summary · why it matters

A U.S. District Court for the Middle District of Florida has unsealed documents in the litigation between Coventry First LLC and Abacus Global Management Inc., revealing that Abacus knowingly relied on unusually short life expectancy estimates from Lapetus Solutions and omitted critical facts from a public description of a valuation report it commissioned from Lewis & Ellis. The unsealed evidence shows that Lapetus reported a realized-to-expected mortality ratio of only 41.5%, meaning fewer than half of the predicted deaths occurred, while major life expectancy providers publicly disclose ratios near 100%. Internal communications indicate Abacus was aware of the disparity, including an email from CEO Jay Jackson questioning whether a policy valuation appeared too high because only Lapetus estimates were used, and a text from Lapetus’s former CEO stating he no longer trusted Abacus. The documents also show that Abacus issued a misleading press release about the Lewis & Ellis report, failing to disclose that it used a lower discount rate to inflate the valuation, provided internal life expectancy estimates for over a third of policies instead of independent ones, and withheld newer, longer life expectancy estimates for several large policies. Coventry, which refiled its answer and counterclaims with the newly unsealed evidence, alleges that Abacus misled investors and the public about its reliance on Lapetus estimates, which were used to originate, sell, and value life insurance policies held in its portfolio and sold to affiliated managed funds, including funds in which credit unions invested over $500 million.

Impact on assets 1

Financials▼ · 1 stocks
Abacus Global Management, Inc.
ABX
▼ NegativeRegulationrelevance

Unsealed evidence shows Abacus misled investors about life expectancy estimates and valuation, facing legal and reputational damage.

Off-coverage companies 3

Coventry First LLCPrivate▲ Positive
Regulationrelevance

Coventry's counterclaims are supported by unsealed evidence, strengthening its legal position.

Lapetus SolutionsPrivate▼ Negative
Regulationrelevance

Lapetus's low mortality estimates are central to the controversy, potentially harming its credibility.

Lewis & EllisPrivate± Mixed
Regulationrelevance

Lewis & Ellis is mentioned as the firm that produced the valuation report, but its role is peripheral.

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