Globe Life Inc. f/k/a Torchmark Corporation (NYSE: GL) is an insurance company offering a wide range of insurance products, including low-cost life insurance policies that offer comparatively lower payouts. Globe Life operates through five wholly owned insurance subsidiaries, which in turn operate agencies located across the country. The largest of the subsidiaries, by both premiums collected and number of sales agents employed, is American Income Life Insurance Company (“AIL”). During the relevant time frame, AIL accounted for approximately one third of Globe Life’s total premiums, and nearly half of its total underwriting profits.

A federal securities fraud class action complaint alleges that Globe Life, via certain of its officers and directors, made numerous materially false and misleading statements and omissions concerning: (i) Globe Life's consistent premium revenue growth, particularly from AIL; and (ii) Globe Life's Code of Business Conduct and Ethics (the "Code of Conduct"). Specifically, the Complaint alleges Defendants repeatedly attributed the Company's consistent premium revenue growth "to increased agent count and productivity." The Complaint alleges that as a result of these misrepresentations, Globe Life common stock traded at artificially inflated prices.

It is alleged that the truth about Globe Life’s business practices 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.

Current Globe Life shareholders who have held Globe Life shares since prior to May 8, 2019, can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to them whatsoever.

If you would like to learn more about this matter, you are encouraged to contact Joshua H. Grabar at [email protected] or call us at 267-507-6085.