PHILADELPHIA, March 31, 2021 / PRNewswire / – Vida Longevity Fund investors, represented by investor rights attorneys at law firm Goldman Scarlato & Penny and their co-attorneys, have filed a class action lawsuit against the Vida Longevity Fund (“VLF” or “Vida”), Vida Management I, Vida Capital Management, Vida Capital Inc., Vida Capital LLC and the former CEO of VLF are seeking compensation related to their recent Vida investment losses.
The Vida investors’ complaint alleges that Vida investors have suffered losses due to deficiencies in the processes and procedures Vida uses to value and price its assets. The complaint also alleges that the securities offering documents distributed to the Vida investors contained false information and did not contain material information related to the failure to implement adequate subscription procedures, Vida’s failure to update the life expectancy of its longevity contingent assets, and failure of Vida acting properly included assessments of the risk of longevity assets, Vida’s lack of adequate staff, and Vida’s inadequate algorithmic process that allegedly underpinned VLF’s pricing and valuation. No judgment has been given on the recently filed allegations and no liability has been established for any company referred to in this press release.
Alleged failure to disclose conflicts
In addition to the above allegations, the complaint alleges that the Vida Longevity Fund’s private placement memorandum did not disclose a material conflict of interest involving a company controlled by Vida’s then chief executive officer, a competitor of Vida. Crucially, the Vida investors’ complaint alleges that other companies have invested forty million dollars in Vida, but unbeknownst to Vida investors, it withdrew its investment in 2018 while Vida was in the process of raising money from investors.
The Vida investors’ complaint alleges that Vida’s offer documents failed to disclose the following material facts:
- Since both Vida and the other company controlled by the then Chief Executive Officer of Vida used the same originator of the life insurance policy, the Chief Executive Officer of Vida, who was the director of all of these companies, had to decide which company would get the best deal.
- Both Vida and the other company raised funds at the same time and shared some investors.
- Both companies used some of the same broker-dealers. and
- Vida and the other company shared the same office space in Austin, Texas.
Allegations of fraudulent sales, control person liability and violations of the Texas Securities Act
The plaintiffs in the class action lawsuit against Vida companies and the then CEO of Vida further allege that the Vida Longevity Fund offered and sold securities to investors using false statements and / or omissions of material facts. The class plaintiffs also allege that Vida Management I and the then CEO of Vida directed and controlled the alleged wrongdoing and knew or should have known about the alleged wrongdoing. In addition, Vida Capital Management, Vida Capital Inc and Vida Capital LLC, in their capacity as advisors, partners and managers of the Vida Longevity Fund, participated in the alleged program of the Vida Longevity Fund while using the one in the Vida, which was materially false and misleading The Longevity Fund’s offer documents were aware of statements.
Investors in Vida Longevity can turn to Goldman Scarlato & Penny’s attorneys
Investors concerned about their Vida investments can contact Goldman Scarlato & Penny’s securities attorneys Alan Rosca and Paul Scarlato For questions about this topic and your investments, or to provide useful information, toll-free at 888-998-0530, email at [email protected] or [email protected]or by leaving a message using the contact form on the Vida Longevity Investor Center page.
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SOURCE Goldman Scarlato & Penny