Abacus Global Management, Inc. strongly refuted the short seller's report published on June 4, 2025, which alleged fraudulent valuation practices. The company stated that the report's claims regarding reliance on Lapetus Solutions for portfolio valuation and inflated balance sheet figures are incorrect. Abacus engaged Lewis and Ellis, a third-party actuarial firm, to review its Q1 2025 policy balance sheet of over 700 policies.
Lewis and Ellis conducted a valuation, removing all Lapetus life expectancy estimates from their analysis, and confirmed Abacus's prior valuation. Their independent valuation of $449 million as of March 31, 2025, fell within a 1% margin of error of Abacus's stated $446 million valuation. This validation supports Abacus's mark-to-market approach, which is based on observed market data rather than solely on life expectancy estimates.
Abacus clarified its dual valuation approach: using life expectancy estimates for consumer-facing policy acquisitions to ensure fair pricing, and a market-based valuation system for its balance sheet management. The company reported that in Q2, through June 2nd, it sold 226 policies for $141.4 million, realizing an incremental gain of 1.65% over their estimated balance sheet value of $139.1 million as of March 31, 2025.
The company also addressed investor concerns regarding the upcoming expiration of the share lock-up on July 3, 2025. Executives and large shareholders, who collectively own approximately 46% of outstanding shares, are looking forward to the lock-up expiration to potentially facilitate the company's addition to the Russell 2000 and Russell 3000 indices in August 2025, which requires the expiration of the longest lock-up period.
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