Plaintiffs Dismiss Lawsuit Against Life Partners

  Plaintiffs Dismiss Lawsuit Against Life Partners

Business Wire

WACO, Texas -- December 3, 2013

Life Partners Holdings, Inc. (Nasdaq GS: LPHI) announced today that the
Plaintiffs have voluntarily dismissed a lawsuit filed against the company as
well as its operating subsidiary, Life Partners, Inc. and two corporate
officers. The abandonment of the lawsuit comes after the United States
District Court for the Northern District of Texas denied a motion for class
certification in the lawsuit.

Life Partners, Inc. is a life settlement provider and provides purchasing
agent services for life settlement transactions. A life settlement is an
alternative investment involving the purchase of an existing life insurance
policy at a discount to its face value.

While the plaintiffs in the case could have appealed the denial of the class
action or continued to pursue the case as individuals, they elected instead to
voluntarily dismiss the case against the Life Partners’ defendants. A key
allegation was that Life Partners’ medical consultant used an unreasonable
method of estimating life expectancies. However, this allegation was
criticized by the Court as part of its 34 page order denying certification as
a class action:

“Proof only of results does not address these factors. Nor could an
after-the-fact analysis of the insureds’ deaths, in the aggregate, establish
that LPI was unreasonable in using Dr. Cassidy when and how it did. … The
Court is highly skeptical that an analysis of results alone could lead a
reasonable juror to determine that Dr. Cassidy’s methods were flawed.”

Life Partners CEO Brian Pardo commented, "This is yet another example of
attorney-driven litigation which damages the entire economy, not to mention
the companies that are the targets of such litigation. We are very pleased
that the plaintiffs decided to walk away from this case and we hope to see
other similar cases end the same way.”

The case is styled Sean Turnbow et al. v. Life Partners, Inc. et al., Case No.
3:11-CV-1030-M, United States District Court for the Northern District of
Texas, Dallas Division.

To view a copy of the court documents dismissing the case and the General
Release by plaintiffs, click here:
http://www.lphi.com/doc/Release_20131203.pdf

Life Partners is the world's oldest and one of the most active companies in
the United States engaged in the secondary market for life insurance, commonly
called "life settlements." Since its incorporation in 1991, Life Partners has
completed over 150,000 transactions for its worldwide client base of over
29,000 high net worth individuals and institutions in connection with the
purchase of over 6,500 policies totaling over $3.2 billion in face value.

LPHI-G

Contact:

Life Partners Holdings, Inc.
Andrea Atwell, 254-751-7797
Shareholder Relations
info@lifepartnersinc.com
www.lphi.com
 
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