Philadelphia, Pennsylvania--(Newsfile Corp. - August 13, 2024) - Grabar Law Office is investigating claims on behalf of Globe Life Inc. (NYSE: GL) FKA Torchmark (NYSE: TMK) shareholders. The investigation concerns whether certain officers of Globe Life have breached their fiduciary duties owed to the company.
Shareholders who have held Globe Life FKA Torchmark stocksince on or before May 8, 2019should visit https://grabarlaw.com/the-latest/globe-life-shareholder-investigation/. You can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to you.
WHY: Globe Life operates its insurance businesses 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.
The truth about Globe Life's alleged improper 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.
WHAT YOU CAN DO NOW: Current Globe Life shareholders who have held Globe Life FKA Torchmark 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 visit https://grabarlaw.com/the-latest/globe-life-shareholder-investigation/, contact Joshua H. Grabar at jgrabar@grabarlaw.com, or call us at 267-507-6085.
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