FORT WASHINGTON, Pa., July 02, 2025 (GLOBE NEWSWIRE) -- Coventry, the leader and creator of the secondary market for life insurance, today released the following statement:
"Abacus’s lawsuit is its latest misdirection and a transparent ploy designed to delay accountability and deflect attention from serious problems of Abacus’s own making,” said Alan Buerger, Coventry’s Chairman.
Coventry continues to believe that Lapetus systematically underestimates life expectancies, which directly threatens investor returns. This belief is validated by expert analysis that concluded exactly that. The studies are available at https://www.coventry.com/research/. It is telling that Abacus’s lawsuit does not directly challenge this bottom line finding, just as it is telling that Lapetus is currently litigating to prevent the disclosure of information that could reflect upon the accuracy (or inaccuracy) of its estimates.
Abacus’s complaint claims that none of its valuations for policies it owns depend on Lapetus’s life expectancy estimates. The complaint also states that Abacus does not use a life expectancy valuation model to value the policies on its balance sheet, instead using “market-based fair value accounting.”
These claims contradict numerous statements Abacus has made in SEC filings, including that it “utilizes a multitude of inputs to determine the fair value of the policies it holds, which may include life expectancy reports generated by a company in which [Abacus] holds a minority ownership interest”, i.e., Lapetus, and that “[t]he valuation of the life insurance policies will vary depending on the dates of the related mortality estimates and the medical underwriting firms that provide the supporting information.”
Similarly, a registration statement for Abacus’s new fund offering discloses that it will use Lapetus as its “primary life expectancy provider” and that Lapetus “provides the most conservative (i.e., longest) life expectancy predictions.” Contrary to what Abacus claims in its complaint, the registration statement is clear that “following acquisition” of a life insurance policy, the fund “expects to utilize Lapetus Solutions as its primary life expectancy provider” with respect to policy valuation. Abacus’s SEC filings belie the notion that it does not use life expectancies to value policies post-acquisition.
Finally, and contrary to Abacus’s claims, Coventry had never heard of Morpheus Research before Morpheus published its initial short report on Abacus, titled “Abacus Global Management: This $740 Million SPAC Is Yet Another Life Settlements Accounting Scheme Manufacturing Fake Revenue By Systematically Underestimating When People Will Die,” and available at https://www.morpheus-research.com/.
Coventry is confident in the strength and integrity of its position and equally confident that Abacus's lawsuit has no merit.
About Coventry
Coventry is the leader and creator of the secondary market for life insurance. For more than 20 years, we have been driving the industry forward and expanding opportunities for life insurance policyowners. Coventry’s deep experience combined with a fierce commitment to consumer rights makes Coventry the clear market leader, a position we use to raise industry standards and expand consumer choice. To date, we have delivered more than $6 billion to policyowners who no longer have a need for their policies. To learn more about Coventry, please visit Coventry.com.
Media Contact: Jonny Shiver Vice President, Marketing (877) 836-8300 jshiver@coventry.com