Aug. 17 (Bloomberg) -- Life Partners Holdings Inc. fell in New York trading after Texas Attorney General Greg Abbott sued the company for allegedly selling unregistered securities.
Life Partners, which buys rights to life insurance death benefits and sells them to investors, plunged 6.7 percent to $2.22 at 9:59 a.m. in New York. The Waco, Texas-based company has dropped about 66 percent this year.
A hearing was scheduled for today in state court in Austin after Abbott sought a court order barring Life Partners, Chief Executive Officer Brian D. Pardo and President R. Scott Peden from continuing to sell the allegedly fraudulent Securities. The attorney general is also seeking to appoint a receiver.
“We deny the allegations in the strongest possible terms,” Pardo said in a statement issued by Life Partners Holdings late yesterday. He also said Texas courts and a federal appeals court had reviewed the companies’ life settlements and ruled they are not securities.
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