SAN DIEGO, May 01, 2024 (GLOBE NEWSWIRE) -- Impact Litigation Law Firm, DiCello Levitt LLP, announces that a class action lawsuit has been filed on behalf of purchasers or acquirers of Globe Life Inc. f/k/a Torchmark Corporation (NYSE: GL) (“Globe Life” or the “Company”) common stock between May 8, 2019 and April 10, 2024, inclusive (the “Class Period”), charging the Company and certain current and former senior executive officers with violations of the federal securities laws. Globe Life investors have until July 1, 2024 to seek appointment as lead plaintiff of the class action lawsuit.
If you purchased Globe Life common stock between May 8, 2019 and April 10, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/globe-life/
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
No Case Has Been Filed and No Class Has Been Certified. Until a case is filed and a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
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, the largest of which—both by premiums collected and number of sales agents employed—is American Income Life Insurance Company (“AIL”).
Throughout the Class Period, Globe Life touted its consistent growth, particularly from AIL, which accounted for 50% of the Company’s profits in 2022 and 2023. Globe Life reported consistent premium revenue growth, led by AIL’s premium revenue growth. The Company also represented that it employees adhered to a Code of Conduct that expressly prohibited various forms of misconduct, ensuring that the Company would maintain a workplace free from violence, threatening behavior, and illegal drugs.
Globe Life, however, was engaged in widespread insurance fraud, which inflated Globe Life’s financial results. Additionally, Globe Life permitted a culture of unchecked sexual harassment, in direct contravention of the Company’s Code of Conduct.
The truth was revealed on April 11, 2024, when Fuzzy Panda Research published a critical research report titled “Globe Life (GL): Executives Disregarded Wide-Ranging ‘Insurance Fraud’ While They Received Millions in Undisclosed Kick-Back Scheme,” alleging that, since 2017, Globe Life had engaged in widespread insurance fraud. The report alleged that several Globe Life subsidiaries were underwriting policies for dead and fictitious people and added policies to existing customers’ accounts without their consent. According to the report, Fuzzy Panda “uncovered extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times” and the alleged “bribery and kickback scheme” has been confirmed through interviews with dozens of former executives and agents, an executive whistleblower, undercover investigations, and a former AIL executive who confirmed that he sent over 200 emails detailing the fraud to Globe Life executives. In addition, the investment research firm uncovered evidence that Globe Life subsidiaries maintained a hostile workplace where sexual harassment, drug use, and sexual assault went unchecked.
On this news, shares of Globe Life plunged to their lowest in over a decade, falling more than 53% (more than $55) to close the April 11, 2024 trading session at $49.17.
About DiCello Levitt
At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.
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