Abacus Global Management under investigation for alleged securities fraud.

• Abacus Global Management under investigation for securities fraud • Morpheus Research report alleges accounting scheme and fake revenue • Report claims Abacus uses questionable life expectancy methodologies • Abacus denies any wrongdoing • Lawsuit filed on behalf of investors seeking damages • Investigation ongoing

Abacus Global Management, Inc. (NASDAQ: ABL) is facing mounting scrutiny and a significant decline in stock value following a series of reports from Morpheus Research, an investigative group led by former analysts from Hindenburg Research. The reports allege that Abacus has been manipulating its life settlements portfolio through aggressive mark-to-model accounting and questionable life expectancy estimates provided by Lapetus Solutions. These practices are said to have resulted in inflated asset values and "fake revenue," causing Abacus's stock to drop sharply.

Morpheus Research published its first report on June 4, 2025, accusing Abacus of manipulating its financial statements. The report claimed that Abacus's accounting methods were misleading and that its life expectancy estimates were not accurate. Abacus responded by retaining the independent actuarial firm Lewis & Ellis to review its balance sheet and reassure investors of its compliance with accounting standards. However, Morpheus's follow-up report on June 12 intensified the controversy, introducing new allegations of undisclosed related-party transactions and "Carlisle Round-Tripping Policies" involving company insiders. The report also questioned the independence of Lewis & Ellis, citing their prior involvement in disputed valuations.

Despite Abacus's attempts to restore investor confidence, including a $20 million share repurchase program, the company's stock has continued to slide, falling more than 36% over the past month. Prominent law firm Hagens Berman has launched its own investigation into the claims raised by Morpheus Research and is encouraging damaged Abacus shareholders to report their financial losses. The firm is also seeking information from individuals with relevant knowledge to aid in their probe.

The investigation is ongoing, and Abacus has denied any wrongdoing. Investors affected by the decline in Abacus's stock price are urged to submit their losses to Hagens Berman to assess their rights and potential claims. Whistleblowers with non-public information regarding Abacus Global Management are also encouraged to come forward, as they may be eligible for rewards under the SEC Whistleblower program.

References:
[1] https://www.tradingview.com/news/reuters.com,2025-07-21:newsml_NFCb1mMZt:0-abacus-global-management-inc-abl-shares-tumble-following-second-morpheus-report-hagens-berman/