Abacus Global Management Sues Coventry and its Chairman Alan Buerger for Defamation and Anticompetitive Conduct
Abacus Global Management (NASDAQ: ABL), a leader in alternative asset management, has filed a lawsuit against Coventry First LLC and its Chairman Alan Buerger for defamation and anticompetitive conduct in Florida's Ninth Circuit Court. The lawsuit alleges that Coventry and Buerger orchestrated a systematic campaign to spread false information about Abacus's valuation practices, culminating in a short report by Morpheus Research on June 4, 2025.
The legal action details how Coventry's campaign led to a 21% drop in Abacus's stock price, erasing over $200 million in market capitalization. Abacus claims Coventry spread misleading information to regulators, auditors, analysts, and investors, particularly regarding Abacus's use of Lapetus Solutions for life expectancy estimates.
Abacus CEO Jay Jackson emphasizes that the company's transparent pricing model has been validated by market transactions, with policies consistently selling to sophisticated investors like KKR at prices exceeding Abacus's valuations. The company is seeking hundreds of millions in damages for harm to its reputation, customer base, and investor relationships.
Abacus Global Management (NASDAQ: ABL), leader nella gestione di asset alternativi, ha intentato una causa contro Coventry First LLC e il suo presidente Alan Buerger per diffamazione e comportamenti anticoncorrenziali presso la Corte del Nono Circuito della Florida. La causa sostiene che Coventry e Buerger abbiano orchestrato una campagna sistematica per diffondere informazioni false sulle pratiche di valutazione di Abacus, culminata in un rapporto short di Morpheus Research il 4 giugno 2025.
L'azione legale descrive come la campagna di Coventry abbia causato un calo del 21% nel prezzo delle azioni di Abacus, cancellando oltre 200 milioni di dollari di capitalizzazione di mercato. Abacus afferma che Coventry abbia diffuso informazioni fuorvianti a regolatori, revisori, analisti e investitori, in particolare riguardo all'uso da parte di Abacus di Lapetus Solutions per le stime di aspettativa di vita.
Il CEO di Abacus, Jay Jackson, sottolinea che il modello di pricing trasparente dell'azienda è stato confermato dalle transazioni di mercato, con polizze vendute costantemente a investitori sofisticati come KKR a prezzi superiori alle valutazioni di Abacus. L'azienda richiede centinaia di milioni di danni per il danno subito alla reputazione, alla base clienti e alle relazioni con gli investitori.
Abacus Global Management (NASDAQ: ABL), líder en gestión de activos alternativos, ha presentado una demanda contra Coventry First LLC y su presidente Alan Buerger por difamación y conducta anticompetitiva ante el Tribunal del Noveno Circuito de Florida. La demanda alega que Coventry y Buerger orquestaron una campaña sistemática para difundir información falsa sobre las prácticas de valoración de Abacus, culminando en un informe en corto de Morpheus Research el 4 de junio de 2025.
La acción legal detalla cómo la campaña de Coventry provocó una caída del 21% en el precio de las acciones de Abacus, eliminando más de 200 millones de dólares en capitalización de mercado. Abacus afirma que Coventry difundió información engañosa a reguladores, auditores, analistas e inversores, especialmente en relación con el uso que hace Abacus de Lapetus Solutions para estimar la esperanza de vida.
El CEO de Abacus, Jay Jackson, enfatiza que el modelo de precios transparente de la compañía ha sido validado por transacciones de mercado, con pólizas vendidas constantemente a inversores sofisticados como KKR a precios superiores a las valoraciones de Abacus. La empresa busca cientos de millones en daños por el perjuicio a su reputación, base de clientes y relaciones con inversores.
Abacus Global Management (NASDAQ: ABL)는 대체 자산 관리 분야의 선두주자로서 플로리다 제9순회법원에 Coventry First LLC와 그 회장 Alan Buerger를 명예훼손 및 반경쟁 행위로 고소했습니다. 소송은 Coventry와 Buerger가 Abacus의 평가 관행에 대해 허위 정보를 체계적으로 유포하는 캠페인을 벌였으며, 이는 2025년 6월 4일 Morpheus Research의 공매도 보고서로 절정에 달했다고 주장합니다.
법적 조치는 Coventry의 캠페인이 Abacus 주가를 21% 하락시켜 2억 달러 이상의 시가총액을 날려버렸다고 상세히 설명합니다. Abacus는 Coventry가 규제 기관, 감사인, 분석가 및 투자자들에게 오해의 소지가 있는 정보를 퍼뜨렸으며, 특히 Abacus가 Lapetus Solutions를 사용해 기대수명을 추정하는 부분에 대해 허위 정보를 제공했다고 주장합니다.
Abacus의 CEO Jay Jackson은 회사의 투명한 가격 책정 모델이 시장 거래를 통해 검증되었으며, KKR과 같은 정교한 투자자들에게 Abacus의 평가보다 높은 가격에 꾸준히 보험이 판매되고 있다고 강조합니다. 회사는 명성, 고객 기반 및 투자자 관계에 입은 피해에 대해 수억 달러의 손해 배상을 요구하고 있습니다.
Abacus Global Management (NASDAQ : ABL), un leader dans la gestion d'actifs alternatifs, a intenté une action en justice contre Coventry First LLC et son président Alan Buerger pour diffamation et pratiques anticoncurrentielles devant la Cour du neuvième circuit de Floride. Le procès allègue que Coventry et Buerger ont orchestré une campagne systématique visant à diffuser de fausses informations sur les pratiques d'évaluation d'Abacus, culminant avec un rapport à découvert de Morpheus Research le 4 juin 2025.
La procédure judiciaire détaille comment la campagne de Coventry a entraîné une chute de 21 % du cours de l'action Abacus, effaçant plus de 200 millions de dollars de capitalisation boursière. Abacus affirme que Coventry a diffusé des informations trompeuses auprès des régulateurs, auditeurs, analystes et investisseurs, notamment concernant l'utilisation par Abacus de Lapetus Solutions pour les estimations d'espérance de vie.
Le PDG d'Abacus, Jay Jackson, souligne que le modèle de tarification transparent de la société a été validé par les transactions sur le marché, avec des polices vendues régulièrement à des investisseurs avertis comme KKR à des prix supérieurs aux évaluations d'Abacus. L'entreprise réclame des centaines de millions de dollars de dommages et intérêts pour le préjudice subi à sa réputation, sa clientèle et ses relations avec les investisseurs.
Abacus Global Management (NASDAQ: ABL), ein führendes Unternehmen im Bereich alternativer Vermögensverwaltung, hat Klage gegen Coventry First LLC und dessen Vorsitzenden Alan Buerger wegen Verleumdung und wettbewerbswidrigen Verhaltens beim neunten Bezirksgericht von Florida eingereicht. Die Klage behauptet, dass Coventry und Buerger eine systematische Kampagne zur Verbreitung falscher Informationen über Abacus' Bewertungsmethoden orchestrierten, die in einem Short-Report von Morpheus Research am 4. Juni 2025 gipfelte.
Die Klage beschreibt, wie die Kampagne von Coventry zu einem 21%igen Kursrückgang der Abacus-Aktien führte und damit über 200 Millionen Dollar an Marktkapitalisierung vernichtete. Abacus behauptet, dass Coventry irreführende Informationen an Regulierungsbehörden, Prüfer, Analysten und Investoren verbreitete, insbesondere hinsichtlich der Nutzung von Lapetus Solutions zur Lebenserwartungsschätzung durch Abacus.
Abacus-CEO Jay Jackson betont, dass das transparente Preismodell des Unternehmens durch Markttransaktionen bestätigt wurde, wobei Policen konstant an anspruchsvolle Investoren wie KKR zu Preisen verkauft wurden, die über den Bewertungen von Abacus liegen. Das Unternehmen fordert Hunderte Millionen Schadensersatz für Schäden an Ruf, Kundenstamm und Investorenbeziehungen.
- Abacus's financial statements and internal controls have been consistently found in compliance with GAAP by public company auditors
- Company maintains zero asset-backed debt, contrary to accusations
- Market transactions consistently validate Abacus's asset valuations through sales to sophisticated investors
- Company's transparent pricing model has led to market share gains against competitors
- Stock price dropped 21% following short seller report, erasing over $200 million in market value
- Company facing reputational damage from widespread dissemination of negative claims
- Ongoing legal battle could consume management attention and resources
- Investor confidence may be temporarily affected by controversy around valuation practices
Insights
Abacus's defamation lawsuit against Coventry highlights serious market manipulation allegations that triggered a 21% stock drop worth $200M.
This lawsuit represents a significant legal challenge with potentially material financial implications for Abacus Global Management. The company has filed suit against competitor Coventry and its chairman Alan Buerger, alleging a systematic defamation campaign that culminated in a short-seller report causing a
The legal complaint centers on demonstrably false claims about Abacus's valuation methodology. Specifically, Coventry allegedly misrepresented that Abacus uses Lapetus Solutions' life expectancy estimates to value its balance sheet assets, when Abacus's public disclosures explicitly state otherwise. This is a textbook example of defamation per se - a false statement that directly harms a business's reputation.
What makes this case particularly strong is the alleged coordination between Coventry and Morpheus Research. The timing is suspect - Buerger's inflammatory interview was released just hours before Morpheus published its short report. If discovery produces evidence of collusion, this could potentially implicate securities manipulation under Section 10(b) of the Exchange Act.
Abacus's allegations that Coventry deliberately targeted multiple stakeholders - including Abacus's auditor, analysts, and regulators - suggests a coordinated tortious interference strategy. The lawsuit strategically highlights Coventry's checkered regulatory history to establish a pattern of questionable business practices.
The factual dispute centers on a verifiable claim: does Abacus use Lapetus for balance sheet valuations? If Abacus can definitively prove it doesn't (via its audited financial statements), the defense will struggle to claim their statements were merely opinions or good faith criticism.
Abacus's lawsuit against Coventry reveals a market manipulation campaign that erased $200M in market cap through coordinated short-selling attacks.
This legal action reveals a textbook example of how defamation can trigger significant financial harm in public markets. The
The core financial dispute revolves around Abacus's valuation methodology. Coventry's allegations suggest Abacus is overstating asset values through manipulated life expectancy estimates. However, Abacus's rebuttal presents a compelling counterargument: their assets are consistently validated by sophisticated third-party investors like KKR who purchase policies at prices exceeding Abacus's valuations.
This transaction-based validation is particularly significant. When institutional investors conduct independent due diligence and repeatedly pay premium prices for Abacus's assets, it creates strong evidence against valuation manipulation claims. In essence, the market itself is refuting Coventry's central premise.
Investors should note Abacus's clarification regarding its capital structure - specifically the absence of asset-backed debt. This directly contradicts Buerger's alarming claim that shareholders would be "wiped out" by senior debt holders, a statement that likely contributed significantly to the panic selling.
Looking deeper at the accusations regarding Lapetus Solutions, the impact varies dramatically depending on whether life expectancy estimates affect balance sheet valuations (as Coventry claims) or merely pricing decisions when purchasing policies (as Abacus states). The latter would actually benefit policyholders while potentially reducing margins - an ethical but hardly fraudulent business practice.
Coventry and Chairman Alan Buerger Engaged in Years-Long Campaign to Systematically Disseminate False and Misleading Information About the Publicly-Traded Company
Coventry and Buerger Found a Key Partner and Megaphone for its Defamatory Statements: Short Seller Morpheus Research
ORLANDO, Fla., July 01, 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 statement:
Coventry First LLC, parent company of life settlements provider Coventry Direct (“Coventry”), and its Chairman Alan Buerger engaged in a concentrated effort to manipulate market sentiment about its biggest competitor, Abacus Global Management, through a systematic campaign to disseminate false and misleading statements about Abacus to regulators, auditors, market analysts, customers, investors and the public, causing confusion, concern, and financial injury to Abacus, its clients, and its shareholders, according to a lawsuit filed last night by Abacus in Florida’s Ninth Circuit Court.
The lawsuit alleges that a short report published by Morpheus Research on June 4, 2025 was Coventry’s latest attack on Abacus. Coventry will be responsible for hundreds of millions of dollars in damages should Abacus prove that Morpheus was acting as Coventry and Buerger’s willing partner and megaphone for the same defamatory statements Coventry was circulating about Abacus’ valuation methodology, statements regulators and market makers had ignored for months.
The lawsuit details a multi-year effort by Coventry and its Chairman and founder, Alan Buerger, to cast doubt on Abacus’ valuation practices and stock price. Unable to compete with Abacus’ transparent pricing model and performance, Coventry and Buerger devised a scheme to undermine Abacus through false and misleading statements to convince the market that Abacus pays policyholders too much for their policies, causing an overvaluation of Abacus’ assets. This is more than idle talk: they have tried to convince anyone who will listen that the biggest threat to Coventry’s business is in fact illegitimate.
“This isn’t about competitive practices or even good faith criticism of a competitor’s business model – they clearly crossed the line into tortious interference and defamation,” said Abacus Global Management CEO Jay Jackson. “They’re losing market share to Abacus because we offer policyholders better terms and more transparent pricing, so instead of competing on product, they chose to try to manipulate markets by damaging Abacus’ reputation, confusing its customers, and undermining investor confidence with false statements. We’ve built a successful business through our fierce commitment to transparency – and we are going to fight back.”
The lawsuit details the fundamental flaw at the center of Coventry’s false claims: Abacus buys policies from individuals and sells them to investors. When the policies are sold to investors, who conduct their own evaluation of the policies’ value, the sale price consistently exceeds Abacus’ valuations. In short, the market is thoroughly and indisputably corroborating the value of Abacus’ assets and debunking Coventry’s central premise.
“Coventry's core claim is that top-tier investors like KKR are overpaying for life insurance policies—policies they've purchased from Abacus repeatedly over many years,” continued Abacus CEO Jackson. “Coventry essentially argues that they and Alan Buerger, with their less than sterling reputation, are more sophisticated investors than these major institutional firms. This claim is clearly absurd.”
Coventry’s claim “deliberately ignores Abacus’ consistent and legally mandated disclosures that its publicly-traded balance sheet is valued ‘under the fair value method’ – that is, market price,” according to the filing.
To convince the market that Abacus is not properly valuing its policies, Coventry targeted one of the six life expectancy estimate organizations Abacus uses, Lapetus Solutions. Coventry, and in particular Buerger, have “intentionally made false and misleading statements about Lapetus” through “purportedly independent but paid studies” that claim to show Lapetus systematically underestimates life expectancy. Coventry spread these false claims “across a wide range of audiences, each deliberately chosen to inflict maximum harm on Abacus,” including presenting its lies to: Abacus’s auditor, Grant Thornton; TD Securities, a market analyst tracking Abacus’ stock; the Securities and Exchange Commission (“SEC”) and included the defamatory claims about Abacus in a lawsuit against the Florida Office of Insurance Regulation (“OIR”).
Coventry claims Abacus is using Lapetus to value the policies it holds on its balance sheet, thereby inflating the value of each policy based on inaccurate life expectancy estimates. But as the lawsuit explains, quoting public filings, Abacus has repeatedly disclosed that it “does not use a life expectancy valuation model to value the policies,” rendering the entire accusation meritless. Separately, Abacus uses Lapetus as one of six life expectancy provider inputs when determining the price it will pay seniors for their policies, and not to derive its balance sheet valuations. If Coventry is correct that Lapetus is underestimating life expectancy, then it means Abacus is simply overpaying senior citizens for their policies.
Abacus alleges that Coventry and Buerger recently “took these insinuations to the next level” when Buerger gave an interview, on the Tegus expert network platform, in which he accused Abacus of “manufactur[ing] earnings,” said that its “stockholders…will be subordinated to the asset-backed debt, which is to say they will all be wiped out when this thing goes upside down,” falsely repeating that Abacus, was “us[ing] Lapetus…primarily,” and predicting, “it’s just a matter of time before [Abacus] implodes.”
The reality, found in the lawsuit filed today, is Abacus’s financial statements and internal controls over financial reporting have been found “in compliance with GAAP by a respected public company auditor in every annual audit,” that Abacus “has zero asset-backed debt” that can layer other investors in its capital structure, and that Abacus does not use Lapetus “to value the assets on its balance sheet, nor has it ever done so.”
Coventry and Buerger also solicited “multiple short sellers to write a hit piece on Abacus, regurgitating the same false claims about Lapetus and Abacus’s valuation” with at least one prominent short seller who turned them down, noting “that senior citizens are making too much money off of selling their insurance policies is not a compelling story.”
But eventually, Coventry and Buerger found a willing partner and megaphone for its defamatory statements: short seller Morpheus Research.
Buerger’s interview was released to investors for the first time on June 4, 2025, 90 minutes before markets opened. Three hours later, Morpheus Research issued a short report that quoted Buerger’s most inflammatory accusations and heavily cited Coventry’s “research” on Lapetus.
Within minutes, Abacus stock (NASDAQ: ABL) dropped more than
The lawsuit alleges Morpheus was acting as Coventry’s and Buerger’s willing partner and megaphone for the same defamatory statements about the Abacus valuation methodology, which regulators and market makers had ignored for months. The short report from Morpheus “parrots the same or similar false and misleading statements that Coventry had previously peddled.” As Morpheus acknowledges, one of its “sources” for the report includes “Abacus competitors,” a.k.a. Coventry, and Morpheus timed the report to coincide with the release of Buerger’s Tegus interview.
In the wake of Buerger’s interview and the report from Morpheus Research, Abacus is fielding questions from investors “parroting the points Coventry has been shilling for over a year,” and Buerger is “communicating directly with Abacus investors, and disseminating his misleading study of Lapetus.”
The filing notes: “Coventry's relentless campaign against Abacus has caused substantial harm to the company and its shareholders. Coventry's false narrative attempts to project its own financial vulnerabilities onto Abacus, but the facts demonstrate otherwise. The market analysts who came to Abacus’ defense after the short report recognize the truth: Abacus’ transparent approach is a ray of sunshine in an otherwise beleaguered industry, and that explains its rapid rise.”
Further, the lawsuit details how Coventry is “the poster child” for unsavory behavior in the industry, including:
- Bid-rigging charges from the New York Attorney General;
- Settling a multi-billion-dollar fraud case brought by AIG;
- A Florida Office of Insurance Regulation investigation and a subsequent consent order requiring Coventry to adopt a remedial business plan;
- A federal Court of Appeals characterized Coventry’s policy origination practices as “illegal”; and how
- Coventry has been a leading player in Stranger-originated life insurance (STOLI), a practice widely viewed as illegal, and the SEC has noted the practice “may encourage fraud”, and multiple states have banned the practice.
Abacus is represented in the lawsuit by Quinn Emanuel Urquhart & Sullivan LLP. Abacus is seeking hundreds of millions in damages, some of which are still accruing, from the harms to its reputation, its customer base, and its relationships with current and potential investors.
The full filing can be read here.
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
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