Shareholder Class Action Filed Against Imperial Holdings, Inc. by the Law Firm of Kessler Topaz Meltzer & Check LLP

RADNOR, Pa., Dec. 14, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check LLP:

Notice is hereby given that a class action lawsuit was filed in the Southern District of Florida on behalf of purchasers of the common stock of Imperial Holdings ("Imperial Holdings" or the "Company") (NYSE: IFT), who purchased or otherwise acquired Imperial Holdings common stock pursuant or traceable to the Company's February 7, 2011 Initial Public Offering (the "IPO" or the "Offering").

If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases_details.php?id=56.

Members of the class may, not later than January 17, 2012, move the Court to serve as lead plaintiff of the class.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 

The Complaint charges Imperial Holdings, certain of its officers and directors, and certain underwriters, with violations of the Securities Act of 1933.  Imperial Holdings is a specialty finance company that focuses on providing premium financing for individual life insurance policies issued by insurance companies, and purchasing structured settlements backed by annuities issued by insurance companies or their affiliates.

On or about February 7, 2011, the Company conducted its IPO.  The IPO was a financial success for the Company and its underwriters, as they raised proceeds of over $189 million by selling over 17.6 million shares of the Company's common stock to investors at a price of $10.75 per share.

The Complaint alleges that the Registration Statement, Prospectus and Prospectus Supplement (collectively, the "Offering Materials") issued in connection with the Company's IPO contained inaccurate statements of material fact, and omitted to state material facts required to be stated, because they failed to disclose that Imperial Holdings had engaged in wrongdoing with respect to its life finance business, which would expose the Company and certain of its executive officers to a federal investigation.

On September 27, 2011, the Company shocked investors when it disclosed that the Federal Bureau of Investigation ("FBI") had executed a search warrant, issued by the U.S. Attorney's office in New Hampshire, at Imperial Holdings' offices.  The Company subsequently disclosed that it "understands that it and certain of its employees, including its chairman and chief executive officer, and its president and chief operating officer, are under investigation in the District of New Hampshire with respect to its life finance business."  Trading in the Company's stock was halted as a result of this news.  The following day, all three of the financial firms that had acted as underwriters of the Company's IPO less than eight months earlier downgraded or suspended their coverage of Imperial Holdings.

Shares of the Company's stock resumed trading on September 28, 2011.  By the close of trading that day, the Company's shares had declined $4.11 per share, or over 65 percent, to close at $2.19 per share, on unusually heavy trading volume.  This closing price on September 28, 2011 represented a cumulative loss of $8.56, or nearly 80 percent, of the value of the Company's stares from the time that they were sold to investors in the IPO less than eight months earlier.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].  For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases_details.php?id=56.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country.  Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

SOURCE Kessler Topaz Meltzer & Check, LLP