Investigations
Globe Life Inc.
Overview
Overview
- Deadline:
- Upcoming
| Company Name: | Company Name: Globe Life Inc. |
| Stock Symbol: | Stock Symbol: GL |
Globe Life Inc. (NYSE:GL): Bleichmar Fonti & Auld is investigating whether the board of directors and certain senior executives of Globe Life Inc. (“Globe Life” or the “Company”) breached their fiduciary duties by failing to stop, and/or condoning, pervasive fraud and sexual harassment at the Company. As a result of these wrongful actions, Globe Life is currently party to numerous lawsuits and investigations, including an investigation by the Department of Justice (“DOJ”).
If you are a long-term holder of shares of Globe Life, you are encouraged to submit your information. You can also contact: Ross Shikowitz, Esq., at 212-789-3619, or by email to ross@bfalaw.com.
Investigation Details:
A recent investor report has exposed troubling allegations that Globe Life is engaged in widespread insurance fraud. The investor report relies on whistleblower complaints, interviews with former employees, public lawsuits, and other credible sources. Based on that information, the report concludes that instances of insurance fraud have been unearthed at the Company’s sales agencies that account for $200 million of the annualized life premiums paid by customers, or roughly 60% of all premiums. The rampant instances of insurance fraud seem to stem from a perverse bonus structure that compensates agents for the life of an insurance policy within a short amount of time (usually within 6 months), even if the policy itself is cancelled shortly after that time. As a result, sales agents have an incentive to commit fraud, sometimes paying the premiums themselves with bonus money, with little oversight from the Company.
The credible allegations of insurance fraud are egregious. Sales agents are alleged to have written policies for dead or fictitious people, forged customer signatures, written insurance policies and withdrew money from accounts without customer consent, and committed actuarial fraud by lying about the health of specific customers. According to one whistleblower, senior executives were routinely made aware of ongoing fraud by top sales agents, as many as 200 times, yet failed to take any action in response. Rather than investigate these complaints, the Company chastised the whistleblower to stop talking to regulators and ultimately terminated his employment. Likely as a result of these allegations, the DOJ has opened an investigation into the Company’s illegal sales practices, which further substantiates the credible allegations found in the investor report and public lawsuits.
In addition to ongoing insurance fraud, there are numerous public lawsuits alleging a toxic workplace at the Company where drugs are openly used by employees and top sales agents engage in egregious sexual harassment of female subordinates, up to and including rape, without any oversight by the Company. Based on the complaints, BFA believes the Company utterly lacks controls to ensure a safe workplace. As such, the victims of sexual harassment are often forced to report sexual harassment directly to the perpetrators themselves, without any oversight by the Company.
BFA is concerned that the board of directors and certain senior management of Globe Life may have breached their fiduciary duties. BFA intends to take all actions necessary to protect the interests of Globe Life stockholders and to ensure that the fiduciaries are held accountable for the Company’s pervasive violations of the law.
Next Steps:
If you are a long-term holder of shares of Globe Life, you may have legal options and you are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Fill out the form for more information.
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you are a long-term holder of shares of Globe Life, you are encouraged to submit your information. You can also contact: Ross Shikowitz, Esq., at 212-789-3619, or by email to ross@bfalaw.com.
Investigation Details:
A recent investor report has exposed troubling allegations that Globe Life is engaged in widespread insurance fraud. The investor report relies on whistleblower complaints, interviews with former employees, public lawsuits, and other credible sources. Based on that information, the report concludes that instances of insurance fraud have been unearthed at the Company’s sales agencies that account for $200 million of the annualized life premiums paid by customers, or roughly 60% of all premiums. The rampant instances of insurance fraud seem to stem from a perverse bonus structure that compensates agents for the life of an insurance policy within a short amount of time (usually within 6 months), even if the policy itself is cancelled shortly after that time. As a result, sales agents have an incentive to commit fraud, sometimes paying the premiums themselves with bonus money, with little oversight from the Company.
The credible allegations of insurance fraud are egregious. Sales agents are alleged to have written policies for dead or fictitious people, forged customer signatures, written insurance policies and withdrew money from accounts without customer consent, and committed actuarial fraud by lying about the health of specific customers. According to one whistleblower, senior executives were routinely made aware of ongoing fraud by top sales agents, as many as 200 times, yet failed to take any action in response. Rather than investigate these complaints, the Company chastised the whistleblower to stop talking to regulators and ultimately terminated his employment. Likely as a result of these allegations, the DOJ has opened an investigation into the Company’s illegal sales practices, which further substantiates the credible allegations found in the investor report and public lawsuits.
In addition to ongoing insurance fraud, there are numerous public lawsuits alleging a toxic workplace at the Company where drugs are openly used by employees and top sales agents engage in egregious sexual harassment of female subordinates, up to and including rape, without any oversight by the Company. Based on the complaints, BFA believes the Company utterly lacks controls to ensure a safe workplace. As such, the victims of sexual harassment are often forced to report sexual harassment directly to the perpetrators themselves, without any oversight by the Company.
BFA is concerned that the board of directors and certain senior management of Globe Life may have breached their fiduciary duties. BFA intends to take all actions necessary to protect the interests of Globe Life stockholders and to ensure that the fiduciaries are held accountable for the Company’s pervasive violations of the law.
Next Steps:
If you are a long-term holder of shares of Globe Life, you may have legal options and you are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Fill out the form for more information.
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.