Wed Jan 4, 2012 8:59am EST
(Reuters) – Shares of Life Partners Holdings Inc plummeted 36 percent in pre-market trading on Wednesday, a day after U.S. market regulators accused the company of an accounting fraud which overvalued assets on the firm’s books.
Shares of the company, which is active in the secondary market for life insurance, were trading down 35 percent at $4.15
before the bell on Nasdaq.
On Tuesday, the U.S. Securities and Exchange Commission accused the Waco, Texas-based company and three of its executives of “systematically and materially” underestimating life expectancy estimates it used to price transactions.
Life Partners Holdings’ Chief Executive Brian Pardo, who was among the three executives charged, had however, rejected the accusation and said in a statement that the company believes the SEC charges have “no merit” and intends to “vigorously defend” itself.
(Reporting by Ashutosh Pandey in Bangalore; Editing by Supriya Kurane)
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