Coventry Responds to Baseless Lawsuit by Abacus Global Management, Inc.

Rhea-AI Summary

Coventry has responded to a lawsuit filed by Abacus Global Management (NASDAQ: ABL), characterizing it as a diversionary tactic. Coventry's Chairman Alan Buerger maintains that Lapetus, in which Abacus holds a minority stake, systematically underestimates life expectancies, potentially impacting investor returns.

The response highlights apparent contradictions between Abacus's lawsuit claims and their SEC filings. While Abacus's complaint states they don't rely on Lapetus's life expectancy estimates for policy valuations, their SEC documents indicate otherwise, including statements about using Lapetus as their "primary life expectancy provider" for their new fund.

Coventry also denies any connection to Morpheus Research, which previously published a short report on Abacus, and maintains confidence in their position regarding the lawsuit's lack of merit.

Positive

• None.

Negative

• Coventry alleges Lapetus systematically underestimates life expectancies, potentially threatening investor returns
• Apparent contradictions between Abacus's lawsuit claims and their SEC filings regarding valuation methods
• Legal dispute could create uncertainty for Abacus shareholders

FORT WASHINGTON, Pa. , July 2, 2025 /PRNewswire/ -- Coventry, the leader and creator of the secondary market for life insurance, today released the following statement:

"Abacus's (NASDAQ: ABL) 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/.  

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 life insurance policies will vary depending on the dates of the related mortality estimates and the medical underwriting firms that provide 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.

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.

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SOURCE Coventry

FAQ

What is the lawsuit between Coventry and Abacus Global Management (NASDAQ: ABL) about?

The lawsuit involves allegations about life expectancy estimates, with Coventry claiming that Lapetus (partially owned by Abacus) systematically underestimates life expectancies, while Abacus claims they don't rely on these estimates for policy valuations.

What contradictions does Coventry point out in Abacus's (NASDAQ: ABL) SEC filings?

While Abacus claims in their lawsuit they don't use Lapetus's life expectancy estimates for policy valuations, their SEC filings state they use Lapetus as their 'primary life expectancy provider' and utilize their estimates for policy valuation.

How does Coventry respond to Abacus's (NASDAQ: ABL) claims about Morpheus Research?

Coventry explicitly denies any prior knowledge of Morpheus Research before they published their initial short report on Abacus.

What evidence does Coventry provide to support their claims about Lapetus's life expectancy estimates?

Coventry cites expert analysis supporting their belief, which is available at coventry.com/research, showing that Lapetus systematically underestimates life expectancies.