Life Settlement Investment Litigation Overview

This document is a legal report detailing the litigation between American International Group, Inc. and Coventry First, LLC regarding life settlement investments. The report outlines the allegations made by Lavastone Capital, LLC, a subsidiary of American International Group, against Coventry First. Lavastone claims that Coventry failed to negotiate the lowest prices for life insurance policies, resulting in significant financial losses exceeding $150 million. The report describes Lavastone's assertion that Coventry acted in bad faith, alleging that Coventry's founder and family members engaged in deceptive practices, including the use of shell companies to inflate policy prices. Specific examples of overcharging are provided, including a transaction where a policy was purchased for $1.9 million and later sold to Lavastone for $3.5 million. Additionally, the report notes Coventry's counterclaim regarding a breach of contract related to an exclusivity provision in their agreement.