Coventry Calls Ritchie Capital Action Desperate; Lawsuit is a Desperate Attempt to Deflect Attention

Coventry today issued the following statement in connection with a lawsuit that was filed by Ritchie Capital Management:

“Coventry considers this action by Ritchie Capital Management to be a cheap publicity stunt to divert attention from its own well-documented problems and will seek an immediate dismissal with prejudice. Coventry has not committed fraud of any kind. Coventry has been and continues to be in full compliance with all agreements related to the Ritchie life settlement portfolio.

It is unfortunate that Ritchie Capital has taken this action in an apparent attempt to blame others for its own shortcomings or wrongdoings. According to published reports, Ritchie is facing a myriad of problems including the withdrawal of $1 billion by investors, a citation by the Securities and Exchange Commission for benefiting from allegedly improper trades, Wells notices have been issued to its principals for possible illegal trading of mutual funds, and serious defections of senior management from the company.

Ritchie Capital Management was well aware of the investigation by the New York Attorney General and acknowledged in writing that its civil complaint against Coventry was not an event of default under any agreement between Coventry and Ritchie.

Coventry is a significant investor in the Ritchie life settlement portfolio, and is concerned that this action by Ritchie Capital Management may put this investment at risk. Coventry believes that this life settlement portfolio is a strong investment vehicle, though it has been compromised by a lack of liquidity due to the well publicized problems of Ritchie Capital Management.”

CONTACT:
Michael Sitrick
+1-310-788-2850
Jeff Lloyd
+1-212-573-6100
Sitrick and Company