Robbins LLP is Investigating the Allegations that Globe Life, Inc. (GL) Engaged in Insurance Fraud
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Globe Life, Inc. f/k/a Torchmark Corporation (NYSE: GL) common stock between May 8, 2019 and April 10, 2024. Globe Life is an insurance company that offers a wide range of insurance products, including life insurance, mortgage protections, and supplemental health insurance. Globe Life operates five wholly owned insurance subsidiaries with Income Life Insurance Company (“AIL”) being its largest.
The Allegations
According to the complaint, during the class period, Globe Life touted its consistent revenue growth, particularly from AIL, which accounted for 50% of the Company’s profits in 2022 and 2023. During the class period, Globe Life reported consistent premium revenue growth at the Company, led by consistent premium revenue growth at AIL. The Company also represented that its employees adhered to a Code of Conduct requiring all Globe Life employees comply with relevant laws and regulations, purportedly ensuring that the Company would maintain a workplace free from violence, threatening behavior, and illegal drugs.
The complaint alleges that the truth emerged on April 11, 2024, when investment research firm Fuzzy Panda published a report alleging that Globe Life had engaged in wide-spread insurance fraud, while permitting a culture of unchecked sexual harassment. Specifically, the report alleged that several Globe Life subsidiaries were underwriting policies for dead and fictitious people, as well as adding policies to existing users’ accounts without their consent. In addition, the investment research firm uncovered evidence that the subsidiaries maintained a hostile workplace where sexual harassment, drug use, and sexual assault went unchecked — conduct that violated the Company’s Code of Conduct.
As a result of these disclosures, the price of Globe Life common stock declined $55.76, or 53%, from a closing price of $104.93 per share on April 10, 2024, to a closing price of $49.17 per share on April 11, 2024.
What Now: You may be eligible to participate in the class action against Glove Life, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 1, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.