Life Partners Holdings, Inc.

Lead Plaintiff Deadline: 04/04/11

Date filed:

Class period:

Court:

NASDAQ:

(NASDAQ: LPHI)

Date Filed: February 02, 2011

Class Period: May 29, 2007 – January 19, 2011

Court: Western District of Texas

On February 02, 2011, a securities class action complaint was filed in the United States District Court for the Western District of Texas against Life Partners Holdings, Inc. (“Life Partners” or the “Company”) and certain of its executive officers, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, during the alleged class period of May 29, 2007 through January 19, 2011.

Life Partners, based in Waco, Texas, is engaged in the secondary market for life insurance known generally as life settlements. The Company brokers the sale of life settlements between sellers and purchasers, and does not take possession or control of the policies.  On December 21, 2010, The Wall Street Journal published an article with the results of its investigation into Life Partners’ life-expectancy estimates and business practices. The Wall Street Journal noted that Life Partners “has made large fees from its life-insurance transactions while often significantly underestimating the life expectancies of people whose policies its customers invest in.”  On January 20, 2011, The Wall Street Journal reported, and the Company subsequently confirmed, that the SEC was investigating Life Partners concerning its life expectancy estimates.

As alleged in the complaint, defendants failed to disclose material adverse facts about the Company’s true financial condition, business, and prospects throughout the class period, including that: (i) Life Partners routinely used unrealistically short life expectancy estimates for life settlement policies it sold to investors; (ii) a significant number of individuals insured by policies sold by Life Partners lived beyond the life expectancy estimates provided to investors; (iii) by underestimating life expectancy rates, Life Partners was able to charge investors large fees for brokering the life settlement policies and, thereby, significantly increase its revenues; and (iv) as a result, the Company’s financial statements were false and misleading at all relevant times.

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