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ORLANDO, Fla. - Abacus Global Management, Inc. (NASDAQ:ABL), an alternative asset management firm, has publicly contested allegations made in a recent short-seller report. The company reaffirmed the accuracy of its balance sheet valuation following claims of overreliance on a single life expectancy provider and subsequent inflation of its financials. The stock, which InvestingPro analysis suggests is currently undervalued, has declined 19% in the past week amid these allegations.
The short seller’s report, dated June 4, 2025, accused Abacus of excessive dependence on Lapetus Solutions for life expectancy estimates and suggested this had led to inflated valuations on the company’s balance sheet. Abacus, however, has stood by its valuation methods and processes, receiving support from market analysts and its auditor.
In response, Abacus engaged Lewis and Ellis, an independent actuarial firm, to validate its portfolio valuation. The firm’s analysis, which excluded life expectancy estimates from Lapetus, confirmed Abacus’s valuation with a result of $449 million as of March 31, 2025, closely aligning with the company’s reported $446 million.
Market analysts have maintained positive ratings on Abacus’s stock, with several reiterating their support following the short report. Autonomous/Bernstein and Piper Sandler rated the stock as "Outperform" and "Overweight," respectively, with similar sentiments echoed by BRiley, TD Bank, and Northland. According to InvestingPro data, analyst price targets range from $12 to $15, with a strong buy consensus recommendation. These ratings and price targets underscore confidence in Abacus’s financial position. For deeper insights into analyst perspectives and detailed financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 US stocks including ABL.
Grant Thornton, the auditor for Abacus, has also reaffirmed the company’s mark-to-market valuation approach, distancing itself from a misleading statement attributed to a Grant Thornton UK CEO, which the short report cited. Abacus clarified that Grant Thornton UK is a separate legal entity from Grant Thornton US, the firm responsible for auditing Abacus.
Abacus also highlighted its sophisticated valuation framework, which incorporates both life expectancy estimates for consumer transactions and market-based valuations for balance sheet management. The company emphasized its strategy of high portfolio turnover and real-time valuation, which aligns with its active trading model.
Recent market transactions have supported Abacus’s valuation approach, with policy sales in Q2 2025 closely matching the company’s mark-to-market estimates, resulting in a realized gain. The company’s revenue growth has been robust, showing a 73.39% increase over the last twelve months, with an impressive gross profit margin of 88.29% according to InvestingPro data.
Furthermore, Abacus addressed concerns regarding the upcoming expiration of a share lock-up period for its executives and shareholders. The company’s leadership, which holds a significant portion of outstanding shares, is committed to the company’s growth and anticipates the positive impact of potential inclusion in the Russell 2000 and 3000 indices in August 2025.
In conclusion, Abacus has firmly rejected the short seller’s claims and underscored its commitment to transparency and accuracy in its financial reporting. The company remains focused on its growth and expansion, despite the allegations. This article is based on a press release statement from Abacus Global Management.
In other recent news, Abacus Global Management announced a $20 million stock buyback plan, aiming to enhance shareholder value over an 18-month period. This decision follows a short seller report that criticized the company’s asset valuation methods, alleging that Abacus Life has been overestimating life spans to inflate valuations. Despite these claims, Piper Sandler analysts maintained their Overweight rating and set a $12.00 price target for the company, noting the complexity of life expectancy valuations. In response to the short seller’s allegations, Abacus Global Management refuted the claims, highlighting its 40% gains on a capital deployment of $126 million in the first quarter as evidence of its strong financial performance. The company also plans to pursue legal action against those responsible for the short attack. Abacus has emphasized its audited and consistent valuation methods, attributing its success to long-standing industry relationships. Additionally, the company has expressed its intent to continue its growth trajectory and maintain transparency with stakeholders.
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