San Diego, Sept. 29, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Imperial Holdings, Inc. (NYSE:IFT) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Imperial Holdings (NYSE:IFT) concerning whether the company and certain of its officers and directors have violated federal securities laws. Specifically the investigation concerns certain statements regarding Imperial Holdings business, its prospects and its operations were materially false and misleading at the time they were made.

Imperial Holdings is a company that purports to make lump-sum payments on legal settlements and life insurance policies. Imperial Holdings annual Revenue rose from $29.93million in 07 to $96.61million in 09, but then fell in 2010 to $76.90million. Its annual Net Income fell from a Net Income in 07 of $2.02million to a Net Loss of $8.64million in 09 and a Net Loss of $15.70million in 2010.

Imperial Holdings became a publicly traded company in February 2011 when it raised $179.2 million in an initial public offering (IPO), selling over 16.66 million IFT shares to the public at $10.75 per share.

Over the next months shares of Imperial Holdings, Inc. (Public, NYSE:IFT) traded at roughly $10.

On August 11, 2011 Imperial Holdings, Inc. announced its Second Quarter 2011 Results. Imperial Holdings, Inc. said that during the second quarter of 2011, Imperial reported total revenue of $29.2 million, compared to second quarter 2010 revenue of $20.6 million and that its Income before taxes was $13.8 million in the second quarter compared to a loss of $2.1 million during the same period last year.

Furthermore Imperial Holdings said that for the first six months of 2011, it reported total revenue of $54.1 million, compared to revenue of $40.4 million for the first six months of 2010 and its Net Income before taxes was $21.2 million for the first six months of 2011 compared to a loss of $9.6 million during the same period last year.

Despite those announcements NYSE: IFT shares began to lose value and dropped from slightly below $10 in the beginning of August 2011 to $6.52 on September 20, 2011.

Then on September 27, 2011, after the market closed Imperial Holdings, Inc. (NYSE: IFT) announced that it was served with a search warrant issued by a Magistrate Judge for the U.S. District Court in the Southern District of Florida. Imperial Holdings, Inc said it understands that the company 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.

The same day Federal investigators raided the Florida offices of Imperial Holdings, the FBI said.

Local media were among the first to report the raid. One media outlet reported that FBI agents appeared to be gathering evidence inside Imperial Holdings' offices, and pictures on its website showed agents leaving the building. Another media outlet said an agent leaving the building said he was working for the U.S. Treasury.
Following the news about the Federal Raid shares of Imperial Holdings, Inc. (Public, NYSE:IFT) fell from $6.30 per share on September 27 to a close of $2.19 on September 28, 2011.