Urges transparency on life expectancy accuracy
Following Lapetus's imminent closure, argues elimination of any claim to trade secret protection
TALLAHASSEE, Fla., Aug. 28, 2025 /PRNewswire/ -- Coventry First LLC ("Coventry"), the market leader in life settlements, this week filed a legal response opposing Lapetus Solutions, Inc.'s ("Lapetus") attempt to block disclosure of statutorily required life expectancy audit reports. The filing underscores Coventry's long-held view that the integrity of the life settlement market demands transparency around the accuracy of life expectancy estimates. At the same time, Coventry filed its own motion for summary judgment, arguing that Lapetus's announced shutdown on August 31, 2025, should eliminate any claim to trade secret protection.
Florida law requires life expectancy providers to submit triennial life expectancy audit reports to Florida's Office of Insurance Regulation ("OIR") for the five calendar years preceding each audit. Because these reports measure the accuracy of prior predictions and do not contain the proprietary methods used to generate such predictions, Coventry argues that they are not entitled to trade secret protection. In addition, Lapetus itself has repeatedly publicized its reported "accuracy" in marketing materials, public statements, and direct communications with Coventry. For these reasons, Coventry contends that a ruling in Lapetus's favor is inappropriate and should be denied.
"Investors and regulators alike need confidence that life expectancy estimates are accurate, reliable, and compliant with actuarial standards," said Alan H. Buerger, Coventry's Executive Chairman. "Transparency protects investors and the integrity of the entire life settlement market. As the creator of the secondary market for life insurance, we maintain our commitment to advocating for consumer rights and are active in promoting rigorous industry regulations, as demonstrated by our response to Lapetus's claim."
Lapetus's Imminent Closure Should Make Trade Secret Claims Moot
In an email dated August 18, 2025, Lapetus CEO, Co-Founder and Chief Scientist S. Jay Olshansky, Ph.D. confirmed that the company will be "shutting the doors to all of its business lines on the 31st of August." After that date, Coventry argues that the audit results will not meet the statutory definition of trade secrets because they will not be used "in the operation of a business" or to confer any competitive advantage.
Accordingly, Coventry asserts that it is entitled to summary judgment requiring disclosure of the audit results.
Importance of Accurate Life Expectancies
The stakes extend beyond this litigation. Life expectancies are the linchpin of life settlement valuations. If estimates are routinely too short, the resulting distortions could mislead investors, cause substantial losses, and erode confidence in the market. As Coventry Executive Chairman Alan H. Buerger declared in support of the motion, independent academic review shows Lapetus's life expectancies were shorter in more than 80% of tested cases compared to peers, with an actual-to-expected ratio of just 31%, far short of the 96.3% accuracy rate claimed by Lapetus.
Florida regulators previously recognized this danger after the $800 million Mutual Benefits fraud, where chronically short life expectancies fueled one of the largest Ponzi schemes in state history. As a consequence of Mutual Benefits, the Legislature mandated that life expectancy providers be registered with the OIR and file regular audit reports.
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.
Prosek Partners for Coventry
Andrew Merrill / Kiki Tarkhan
Pro-Coventry@prosek.com
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