In addition to a potential securities fraud investigation by the Securities and Exchange Commssion (SEC), Life Partners Holdings has been overrun with bad news over the past 30 days. Life Partners' share price dropped significantly when allegations regarding inaccurate life expectancies began circulating in December.
For more bad news, see summary below:
- May 16, 2011: Life Partners requests a 15-day extension for filing its 2011 Annual Report after receiving a Wells Notice from the SEC on May 9, 2011, regarding potential securities fraud violations. Click here for related blog posting.
- May 31, 2011: Life Partners announces that it is experiencing delays in the filing of its Annual Report because of an estimated $10.9 million impairment charge and the need for a reexamination by their independent auditor, Ernst & Young.
- June 2, 2011: Life Partners chief executive proclaimed that the delay in filing the Annual Report is due to the SEC's interference and their attempt to "unnerve the Auditors."
- June 3, 2011: Ernst & Young resigns as Life Partners' auditor stating that Life Partners should revise its revenue-recognition policy. Nasdaq notifies Life Partners that it is out of compliance with Nasdaq listing rules due to its failure to file its Annual Report.
- June 17, 2011: Life Partners' previous auditor, Eide Bailly declares that the audit for 2009 "may have material misstatements related to improper revenue recognition" and could no longer be relied upon.