Lapetus Filings With the Florida Office of Insurance Regulation Reveal an Alarmingly Low 41.5% Actual-to-Expected Ratio
Abacus Misled Its Investors by Concealing Critical Facts About the Lewis & Ellis Valuation Report It Had Commissioned
FORT WASHINGTON, Pa., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Coventry First LLC ("Coventry") and its Co-Founder and Executive Chairman, Alan H. Buerger, secured a significant ruling in their ongoing litigation with Abacus Global Management Inc. ("Abacus") (NYSE: ABX). On July 29, 2026, the U.S. District Court for the Middle District of Florida ordered the unsealing of a number of key documents that Abacus has tried to keep from becoming public, including internal Abacus records demonstrating that Abacus knowingly relied on unusually short life expectancy estimates from Lapetus Solutions ("Lapetus") and omitted critical facts from its public description of the Lewis & Ellis valuation report it commissioned.
Coventry Refiles Answer and Counterclaimswith Newly Unsealed Evidence
In accordance with the Court's ruling, Coventry and Mr. Buerger yesterday refiled their Answer and Counterclaims against Abacus with the newly unsealed exhibits. These exhibits provide further support for Coventry's claims that Abacus has misled investors and the public about its reliance on Lapetus's life expectancy estimates as a critical input used to originate, sell, and value life settlement policies held in Abacus's own portfolio and sold to its affiliated managed funds, including funds in which credit unions invested more than $500 million.
Unsealed Documents Show Lapetus's Actual-to-Expected (A/E) Ratio Was Just 41.5%
Abacus has asserted in its legal filings that Lapetus's life expectancies are "not less accurate than the estimates of any other life expectancy provider" and that "Lapetus's estimates reported to the state of Florida are in line with other life expectancy providers." However, the newly unsealed evidence shows that those statements were false and that Abacus knew they were false. In fact, Lapetus reported an A/E ratio of just 41.5%, meaning that fewer than half of the deaths Lapetus predicted occurred during the measurement period. By comparison, leading life expectancy providers have publicly reported A/E ratios close to 100%. This stark difference proves that Lapetus systematically underestimated life expectancies and overstated mortality risk.
Documents Show Abacus Knew Lapetus's Life Expectancy Estimates Were Chronically Short
Other unsealed documents show that Abacus was aware of the disparity between Lapetus's life expectancy estimates and those of other medical underwriters. In one newly unsealed email exchange, Abacus CEO Jay Jackson discussed a policy for which three established life expectancy providers produced life expectancy estimates ranging from 209 to 248 months, while Lapetus estimated just 72 months. Observing that the initial policy valuations looked "really high," Mr. Jackson asked, "Is that because we did Lapetus only?" In another example, the newly unsealed documents reveal correspondence from experienced life settlement investors discussing their unwillingness to purchase life settlement policies from Abacus using pricing based on Lapetus because, as one investor put it, "they usually seem significantly shorter than the other more established LE providers (as I'm sure you're well aware!)."
Lapetus's Former CEO Said He Could No Longer Work with Abacus in Good Faith
Similar concerns were expressed by Lapetus's former CEO in a text message that he sent to a Lapetus Board member regarding his intent to resign. In that message, which is one of the exhibits to the Answer, the Lapetus executive wrote, "I can't continue to work with [Abacus] in good faith. I don't trust them. Since they're our primary and basically only client, I can no longer lead this business."
Abacus Issued Misleading Press Release About the Lewis & Ellis Report
On June 10, 2025, in an effort to reassure investors following an independent short-seller report from Morpheus Research, Abacus issued a press release about a valuation report it commissioned from actuarial firm Lewis & Ellis. According to Abacus, the Lewis & Ellis report was prepared without reliance on Lapetus's life expectancies and produced a portfolio valuation within 1% of Abacus's stated valuation. However, the exhibits to the Answer show that Abacus omitted or misrepresented at least three critical facts about the report:
- First, Abacus instructed Lewis & Ellis to provide valuations at multiple discount rates; however, the Lewis & Ellis valuation that Abacus cited as supporting its portfolio valuation was calculated using a lower discount rate than Abacus had used for its own valuation, thereby generating a valuation millions of dollars higher. Had Abacus referenced the Lewis & Ellis valuation calculated using Abacus's discount rate, the resulting valuation would not have been within 1% as Abacus claimed.
- Second, Abacus failed to disclose that for more than one-third of the policies it asked Lewis & Ellis to value, Abacus provided only its own "internal" life expectancy estimates rather than estimates prepared by independent third-party providers, thereby compromising the independence and reliability of the inputs used in the Lewis & Ellis analysis. Abacus also failed to disclose that Lewis & Ellis expressly cautioned that these so-called "internal" estimates "would not be as utilized within the industry, as the industry may rely on the more Commercial LE opinions."
- Third, Abacus failed to provide Lewis & Ellis with all the life expectancy estimates in its possession for the policies under review, despite Lewis & Ellis's stated assumption in the report that Abacus had provided "all relevant life expectancy information produced for an insured from various LE providers." In several instances, Abacus provided older - and shorter - life expectancy estimates while withholding more recent - and longer - estimates already in its possession. By supplying older, shorter estimates for several of its largest policies, Abacus caused those policies' valuations to be significantly inflated.
Several other key documents that contradict Abacus's public statements remain sealed. Coventry will continue to press for all relevant information to be made public.
Links to Court Documents
Coventry's refiled Answer and Counterclaims can be found here https://www.coventry.com/coventry-and-alan-h-buerger-file-answer-to-abacus-global-management-first-amended-complaint/.
About Coventry
Coventry is the leader and creator of the secondary market for life insurance. For more than 25 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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