Abacus Global Management, Inc. (ABL) Shares Tumble Following Second Morpheus Report – Hagens Berman
SAN FRANCISCO, June 13, 2025 (GLOBE NEWSWIRE) — Investors in Abacus Global Management, Inc. (NASDAQ: ABL) experienced another substantial decline in share price today following the release of a second scathing report from Morpheus Research. Morpheus, a collective of financial analysts known for their focus on uncovering alleged fraud and corporate malfeasance, has now published two critical analyses of Abacus within a week, alleging the life settlements company has engaged in improper accounting.
Hagens Berman is investigating Morpheus Research’s allegations and urges Abacus investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
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The Abacus Global Management, Inc. (ABL) Investigation:
Abacus represents itself as a “leading” financial services company specializing in alternative asset management, data driven wealth solutions, technology innovations, and institutional services. Under relevant accounting rules, Abacus is required to report the value of its assets in conformity with generally accepted accounting principles, which the company has consistently assured investors that it has.
Abacus’ assurances may have come into question on June 4, 2025, when Morpheus Research published its initial report, alleging that Abacus was engaged in an “accounting scheme” within its life settlements portfolio. The report claimed Abacus manufactured “fake revenue” by aggressively using “mark-to-model” accounting and systematically underestimating the life expectancies of insured individuals. Morpheus further highlighted Abacus’s reliance on Lapetus Solutions for life expectancy estimates, suggesting these calculations were questionable and that former employees and industry experts had raised concerns about their accuracy, contributing to an overvaluation of the company’s assets.
The information revealed in the initial Morpheus report caused Abacus Global’s shares to decline over 20% decline in a single trading day.
On June 10, 2025, Abacus published its purported rebuttal of Morpheus’ June 4, 2025 forensic report and primarily reported that it retained an independent actuarial firm (Lewis and Ellis) who “has maintained a sterling reputation” to vet the company’s balance sheet in an effort to debunk Morpheus’ conclusions.
But, on June 12, 2025, Morpheus issued a second follow up report, asserting that Abacus’s rebuttal to the initial claims was inadequate and contradictory to its own SEC filings. The follow report significantly escalated its allegations by presenting what Morpheus claimed was new evidence of undisclosed related-party dealings involving Abacus insiders and raising concerns about “Carlisle Round-Tripping Policies,” thereby intensifying the scrutiny on the company’s financial practices. Morpheus also cast doubt on Abacus’s assertion that third-party validator Lewis & Ellis corroborated its valuations, noting Lewis & Ellis’ prior involvement with another fund that faced lawsuits over flawed valuations and highlighting that Lewis & Ellis had previously relied on inputs provided by the fund itself.
These events caused the price of Abacus shares to decline sharply.
“We’re investigating whether Abacus may have misled investors about its asset values and, more recently, about the independence of Lewis and Ellis who purportedly vetted the company’s asset valuations,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Abacus Global Management and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Abacus Global investigation, read more »
Whistleblowers: Persons with non-public information regarding Abacus Global Management should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
