Investors Sue Viatical Broker Over Poor Predictions

Law360, New York (November 4, 2011, 4:18 PM EDT) -- A group of investors on Thursday hit Life Partners Inc. with a suit in Nevada alleging the viatical settlement broker underestimates life insurance policyholders' life expectancies and exaggerates the rate of return on investment.

Life Partners compounds its fraud by sometimes failing to tell potential investors that if the policyholders live more than a year longer than expected, they must help pay the policyholders' premiums, according to a complaint lodged in federal court by 70-plus investors against the company and its subsidiary Life Partners Holdings Inc....
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