Hagens Berman Investigates Life Partners Holdings, Inc. on behalf of Shareholders by EON


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									Hagens Berman Investigates Life Partners
Holdings, Inc. on behalf of Shareholders
January 25, 2011 09:44 PM Eastern Time  

BERKELEY, Calif.--(EON: Enhanced Online News)--Hagens Berman Sobol Shapiro LLP, an investor rights law
firm, is investigating potential securities fraud involving Life Partners Holdings, Inc. (NASDAQ GS:LPHI) on behalf
of stockholders who purchased LPHI stock between May 29, 2007, and January 20, 2011 (the “Class Period”).

Details of the investigation can be found at www.hbsslaw.com/LPHI. If you have information regarding this matter,
or purchased LPHI stock between May 29, 2007, and January 20, 2011, you are encouraged to call Hagens
Berman partner Reed R. Kathrein at 510-725-3000 for a personal consultation, or contact the Hagens Berman legal
team at LPHI@hbsslaw.com.

On January 20, Life Partners Holdings, Inc. confirmed in a company press release that federal regulators were
investigating the insurance company. The company’s confirmation was then followed by The Wall Street Journal
article entitled “SEC Probes Company Over Life-Span Data,” which reported that the Securities and Exchange
Commission was looking into the way the company estimates the life expectancies of insured individuals.

In an earlier story published on December 21, 2010, The Wall Street Journal had also questioned the company’s
life expectancy projections. The article, “Odds Skew Against Investors in Bets on Strangers' Lives,” indicated that
Life Partners Holdings, Inc. may have “made large fees from its life-insurance transactions while often significantly
underestimating the life expectancies of people whose policies its customers invest in.” 

Life Partners Holdings, Inc., a Waco, Texas, company, is engaged in the secondary market for life insurance,
commonly called "life settlements." Life Partners Holdings, Inc. helps investors buy life insurance policies of terminally
ill patients and the elderly at a discount to the policies' face value.

Hagens Berman seeks information regarding questions raised by The Wall Street Journal surrounding the accuracy
of the methodology used by Life Partners Holdings, Inc. for its life-expectancy projections. The projections are
important because the company can charge investors more for policies that have shorter life expectancies, and
therefore faster payouts. If the insured individual's death comes later than estimated, the payout is delayed and
investors must continue paying premiums, reducing their eventual returns.

According to news reports, Life Partners Holdings, Inc. uses a single physician based in Reno, Nev., to provide its
life-expectancy estimates. An actuary interviewed by The Wall Street Journal stated that he had reviewed this
physician’s work five years ago and had concluded that the Reno –based physician was using an “unrealistic” 
approach that tended to produce inaccurately short life expectancies.

Shares of LPHI dipped by $2.61, or about 17 percent, to $12.43 after Life Partners Holding, Inc. confirmed the
SEC investigation and The Wall Street Journal article. In December 2010, and prior to news articles from The
Wall Street Journal, the LPHI stock traded as high as $18.34.

More information about this case is available at: www.hbsslaw.com/LPHI.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is an investor rights class action law firm and represents
whistleblowers in cases under the federal False Claims Act and state false claims acts. The firm also specializes in
Wall Street Reform Whistleblower litigation. Hagens Berman has offices in Boston, Chicago, Colorado Springs, Los
Angeles, Phoenix, San Francisco and Washington, D.C. Founded in 1993, more about the law firm and its
successes can be found at www.hbsslaw.com. Founded in 1993, HBSS continues to successfully fight for investor
rights in large, complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. A
discussion of the Wall Street tip-off law can be found here. Visit the firm’s securities blog at

Firmani + Associates Inc.
Mark Firmani, 206-443-9357

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