Goldman Scarlato & Penny Is Investigating Securities Sales Practices and Representations to Investors Involving Vida Longevity Fund

Investors in Vida Longevity Fund securities who believe they suffered investment losses might be able to pursue recovery of such losses from the investment advisory firms that recommended those investments, explains the investor rights law firm.

CONSHOHOCKEN, PA / ACCESSWIRE / March 13, 2021 / Goldman Scarlato & Penny PC investor rights attorneys have launched an investigation into the securities sales practices by certain investment advisors surrounding the sales of investments by such advisors in Vida Longevity Fund (VLF), a Texas-based life settlement investment fund. The fund is managed by Vida Capital, an alternative asset manager that purports to focus on “longevity-contingent assets” and other insurance-linked securities.

In late 2020, Vida investors received account statements showing significant losses on their Vida investments. Recent investor updates by Vida suggest that Vida has received a significant amount of redemption requests from investors seeking to withdraw their investments.

Generally speaking, longevity-contingent assets refer to a growing problem in the insurance world: longevity risk. As the name implies, this refers to the risk that a group of people may live longer than expected. This could be a problem for life insurance providers and pension funds, as their financial planning typically relies on the life expectancy of the population staying within their initially predicted parameters.

One common type of longevity-contingent asset is life settlements, which is the process through which life insurance companies sell their policies to a third party for a one-time cash payment.

On the company’s website, Vida Capital indicates that “longevity-based assets” provide “clearly identifiable risks”. However, this view is opposed by other insurance industry commentators who have voiced warnings about risks associated with longevity-contingent assets that sometimes go undisclosed.

The ongoing investigation

The Goldman Scarlato & Penny investor rights lawyers are investigating sales practices and recommendations by financial industry members and other investment advisors who recruited investors to invest in Vida securities. The Goldman Scarlato & Penny investigation, which is led by investor lawyers Alan Rosca and Paul Scarlato, is focused on certain representations and potential omissions made by such financial industry members to their customers, regarding the Vida investments and their suitability for said investors.

Attorneys Rosca and Scarlato are focused in particular on a number of important potential omissions regarding risks and suitability, that they believe such financial industry members should have disclosed to their customers prior to recommending the Vida investments to them.

“Based on our investigation and the evidence we have uncovered, we believe that some of the investment professionals and investment advisory firms that recommended Vida investments to their customers failed to adequately disclose all risks and significant features of that investment,” said attorney Alan Rosca, a securities attorney and partner in Goldman Scarlato & Penny.

“In addition to important risks that should have been disclosed, Vida was not suitable for all investors,” said attorney Paul Scarlato, a partner of Goldman Scarlato & Penny.

Following their investigation, the Goldman Scarlato & Penny investment lawyers have identified important disclosures that they believe should have been made to Vida investors by some of the advisors who recommended Vida, before making such recommendations.

If you invested in Vida Longevity Fund securities and believe you suffered losses, you might be able to pursue recovery of such losses by filing claims against some of the investment advisory firms that, the Goldman Scarlato & Penny attorneys believe, may have improperly recommended Vida to investors in breach of their duties. No allegations of misconduct are being made in this release as to Vida Longevity, its affiliates, or its directors or officers.

As part of their investigation, Goldman Scarlato & Penny has created the Vida Longevity Fund Investor Center. This is a section of the company’s website dedicated entirely to this matter, where Vida investors can read more about this matter and get in touch with attorney Alan Rosca and his colleagues to discuss potential recovery options. The Vida Investor Center, which is not affiliated with Vida or any Vida-related entity, also contains investor updates with news regarding VLS and reports of new developments and actions by the Goldman Scarlato & Penny investor rights attorneys.

Contact:
Goldman Scarlato & Penny P.C.
Conshohocken, Pennsylvania
scarlato@lawgsp.com
888-998-0530

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SOURCE: Goldman Scarlato & Penny P.C.

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