Abacus Global Management Responds to False Short Report – Revenues Consistent with 20-Year Track Record

Rhea-AI Summary

Abacus Global Management (NASDAQ: ABL) has issued a strong rebuttal to a short seller's report, defending its 20-year track record in the life insurance policy trading business. The company reported Q1 2025 realized gains of nearly 40% on $126 million deployed capital, with valuations within 2% margin of error from the previous quarter. CEO Jay Jackson emphasized that Abacus's returns and valuations are audited, suggesting the short report was orchestrated by their largest competitor. As the only publicly traded company in its category, Abacus highlighted its high regulatory oversight across multiple states. The company plans to provide a detailed response to the short seller's claims and pursue legal action against those responsible for the allegedly false and misleading attack.

Positive

• Q1 2025 performance showed strong 40% realized gains on $126 million deployed capital
• Valuations proved accurate with only 2% margin of error from previous quarter
• Company maintains 20-year track record of generating positive revenue
• Status as only publicly traded company in category provides enhanced transparency and oversight

Negative

• Company faces significant short seller attack questioning asset valuations
• Legal proceedings against short sellers could be costly and time-consuming
• Potential reputational damage from short report allegations
• Competitive pressure from privately-held rivals attempting to undermine company

Insights

Financial Analyst

Abacus defends against short seller attack with claims of consistent returns and audit-verified valuations amid potential legal action.

The press release represents a defensive response from Abacus Global Management to what they characterize as a "false and misleading short attack" on their business model. The company is directly addressing allegations that appear to question their valuation methodologies for life insurance policies—their core business for over 20 years.

Abacus presents several points to counter the short thesis: First, they highlight their Q1 realized gains of nearly 40% while deploying $126 million in capital, with valuations within a 2% margin of error from previous marks. This precision in valuation accuracy is presented as evidence against claims of asset overvaluation.

The defensive posture is notable—they attribute the short report to a competitor who has allegedly been "shopping this story for months" and frame the attack as targeting them due to their success and growth. The company's public status subjects them to greater scrutiny than privately-held competitors, which they position as a strength rather than weakness.

The announcement that Abacus will pursue "all available legal remedies" signals they view this as a serious attack requiring formal response. This typically indicates concern about potential share price impact and reputation damage. The promise of a more detailed rebuttal "in the coming days" suggests they're still formulating a comprehensive defense.

What's particularly telling is the emphasis on their regulatory oversight across "nearly every state" and their 20-year track record, suggesting they're attempting to establish credibility through longevity and regulatory compliance rather than addressing specific allegations head-on in this initial response.

ORLANDO, Fla., June 04, 2025 (GLOBE NEWSWIRE) -- Abacus Global Management, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a leader in the alternative asset management space, today provided the following response to a false and misleading short attack.

Abacus has been buying and selling life insurance policies for over two decades with long-standing and trusted counter-party relationships. If Abacus used flawed data causing over-valuation of the underlying insurance product assets, the Company would be going out of business, not consistently producing positive realized returns. As highlighted in the first quarter 10-Q Abacus filed on May 8, 2025, Abacus realized gains of nearly 40% while deploying capital of 126 million. These realized gains were within a margin of error of 2% of the mark from the prior quarter.

"Our returns and valuation are audited, and consistent with a 20-year track record of generating positive revenue. This is a copy and paste of fiction from our largest competitor, who has been shopping this story for months. Our success and growth put a bullseye on us, that’s fine – we are going to continue to grow,” said Jay Jackson, Chief Executive Officer at Abacus Global Management.

Abacus is highly regulated in nearly every state, and Abacus is the only top player in the category that is publicly traded, receiving higher scrutiny than our privately-held competitors.

Abacus will be producing a more detailed response to the inaccurate and false claims made by the short seller in the coming days.

Abacus is committed to pursuing all available legal remedies against the individuals and entities responsible for orchestrating and disseminating the false and misleading short attack.

Forward-Looking Statements

All statements in this press release (and oral statements made regarding the subjects of this press release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Abacus. Forward-looking information includes but is not limited to statements regarding: Abacus’s financial and operational outlook; Abacus’s operational and financial strategies, including planned growth initiatives and the benefits thereof, Abacus’s ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “expect,” ‎‎”intend,” “anticipate,” “goals,” “prospects,” “will,” “would,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).

While Abacus believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the ‎fact that Abacus’s loss reserves are bases on estimates and may be inadequate to cover ‎its actual losses; the failure to properly price Abacus’s insurance policies; the ‎geographic concentration of Abacus’s business; the cyclical nature of Abacus’s industry; the ‎impact of regulation on Abacus’s business; the effects of competition on Abacus’s business; the failure of ‎Abacus’s relationships with independent agencies; the failure to meet Abacus’s investment ‎objectives; the inability to raise capital on favorable terms or at all; the ‎effects of acts of terrorism; and the effectiveness of Abacus’s control environment, including the identification of control deficiencies.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Abacus with ‎the U.S. Securities and Exchange Commission from time to time, including the Annual ‎Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent ‎periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Abacus cautions you not to place undue reliance on the ‎forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Abacus assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Abacus does not give any assurance that it will achieve its expectations.

About Abacus

Abacus Global Management (NASDAQ: ABL) is a leading financial services company specializing in alternative asset management, data-driven wealth solutions, technology innovations, and institutional services. With a focus on longevity-based assets and personalized financial planning, Abacus leverages proprietary data analytics and decades of industry expertise to deliver innovative solutions that optimize financial outcomes for individuals and institutions worldwide.

Contacts:
Investor Relations
Robert F. Phillips – SVP Investor Relations and Corporate Affairs
rob@abacusgm.com
(321) 290-1198

David Jackson – Director of IR/Capital Markets
david@abacusgm.com
(321) 299-0716

Abacus Global Management Public Relations
press@abacusgm.com

FAQ

What were Abacus Global Management's (ABL) Q1 2025 financial results?

Abacus reported realized gains of nearly 40% while deploying capital of $126 million, with valuations within 2% margin of error from the previous quarter.

How has Abacus (ABL) responded to the short seller report?

Abacus strongly denied the allegations as false and misleading, stating they will provide a detailed response and pursue legal action against those responsible for the short attack.

What is Abacus Global Management's (ABL) business model?

Abacus is a leader in alternative asset management, specializing in buying and selling life insurance policies with established counter-party relationships for over 20 years.

What regulatory oversight does Abacus (ABL) have?

Abacus is highly regulated in nearly every state and is the only top player in its category that is publicly traded, subjecting it to higher scrutiny than privately-held competitors.

Who is behind the short attack on Abacus Global Management (ABL)?

According to CEO Jay Jackson, the short report appears to be from their largest competitor who has been attempting to shop this story for months.