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GL.US
id: 1209
Globe Life (GL) Insurance Fraud and Etical Violations Case
E.D. Texas
Court4:24-cv-00376
Case number05/08/2019
Class period Start04/10/2024
Class period End07/01/2024
Lead Plaintiff motion deadline- $GL stockholder filed a claim vs. Globe Life for artificially inflating its stock prices through false statements, and violations of Company's own Code of Ethics.
- On April 11, 2024, on the news of the real state of affairs at Global, $GL plummeted 53.14%, losing $5.2B+ of shareholder value.
During the Class Period, Globe Life reported consistent premium revenue growth at the Company achieved through increased agent count and productivity.
The Company also represented that its employees adhered to a Code of Conduct that expressly prohibited various forms of misconduct.
On April 11, 2024, investment research firm Fuzzy Panda published a report stating that, since 2017, Globe Life had engaged in widespread insurance fraud, including
- underwriting policies for dead and fictitious people,
- adding policies to existing customers’ accounts without their consent.
In addition, Fuzzy Panda uncovered evidence that Globe Life subsidiaries maintained a hostile workplace where sexual harassment, drug use, and sexual assault went unchecked.
When the truth emerged, $GL plummeted 53.14%, losing $5.2B+ of shareholder value.
Considering all the representations, investors have reasons to suspect that Globe Life was artificially inflating its stock prices through insurance fraud, and covering up violations of Company's own Code of Ethics.
Globe Life investors can join this case to be notified about potential recovery.
One of the investors has already filed a class action against the Company for insurance fraud and maintaining a hostile workplace in Eastern District of Texas court.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
04/11/2024
Filing date
04/30/2024
Lead Plaintiff Deadline
07/01/2024