Abacus Global Management (NASDAQ:ABL) on Tuesday firmly rejected allegations raised in a June 4 short-seller report, calling the claims “false and uninformed” and defending the integrity of its asset valuation practices.
The Orlando-based alternative asset manager said the short report’s two central assertions—that Abacus relies excessively on a single life expectancy provider, Lapetus Solutions, and that this inflates its balance sheet—are both incorrect.
Abacus clarified that its portfolio valuation does not depend on Lapetus, and to demonstrate this, it commissioned independent actuarial firm Lewis and Ellis to conduct a review excluding all Lapetus estimates.
Lewis and Ellis’s analysis, covering over 700 life settlement policies, valued the portfolio at $449 million as of March 31, 2025, closely matching Abacus’s previously reported $446 million. The review used a discount rate methodology and inputs including premium streams, policy face values, and discount rates, with all work performed by American Academy of Actuaries-qualified professionals.
“Abacus remains resolute in our process, valuation methodology, and the benefit we provide to both policyholders and investors,” the company said in a statement.
The short-seller report, which Abacus did not name, triggered a sharp decline in the company’s shares last week, with the stock falling as much as 19%. However, several equity research firms, including Autonomous/Bernstein, B. Riley, Piper Sandler and TD Bank, reiterated their support for Abacus following the report.
Abacus highlighted its mark-to-market methodology, which incorporates a broad set of inputs beyond life expectancy, and pointed to recent policy sales and realized gains as further validation of its valuation practices. The company reported 40% realized gains on $126 million in deployed capital in the first quarter, with valuations audited and within a 2% margin of error from prior estimates.
The company, which has a 20-year track record of positive returns, said it remains confident in its long-term strategy and pointed to anticipated inclusion in the Russell 2000 and 3000 indexes in August as a sign of continued investor support.
“We remain focused on growth, transparency, and delivering value to our stakeholders despite these unfounded allegations,” a statement from the company said.
Abacus also announced a $20 million stock buyback plan and indicated it may pursue legal action against those responsible for the short attack.