Globe Life (GL) Tanks 50% After Fuzzy Panda Research Accuses Company of “Wide-Ranging ‘Insurance Fraud’” – Hagens Berman

SAN FRANCISCO, April 11, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Globe Life Inc. (NYSE: GL) investors who suffered substantial losses to submit your losses now.

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Globe Life Inc. (GL) Investigation:

On April 11, 2024, the price of Global Life shares crashed as much as $57, or down about 54%, after Fuzzy Panda Research published a scathing research report entitled “Globe Life (GL): Executives Disregard Wide-Ranging ‘Insurance Fraud’ While They Received Millions in Undisclosed Kickback Scheme.”

The Fuzzy Panda report, based in part on interviews with dozens of former executives and agents, accuses Globe Life’s largest subsidiary (American Income Life, or “AIL”) of engaging in insurance fraud that includes: (1) writing policies for dead and fictitious people; (2) forging signatures; (3) withdrawing funds from consumers’ bank accounts without approval; and (4) using fictitious bank accounts to fund numerous fake policies so agents hit their bonuses.

Fuzzy Panda further reported “[m]ore than three dozen former executives and sales agents said fraudulent business practices began to become widespread at AIL in 2017 as Steve Greer assumed the reins as chief executive and Dave Zophin joined first as executive vice president and then president[]” and “[o]ur interviews with former executives and dozens of former AIL sales agents implicate GREATER than $200 million of fraudulent annual life insurance premium (ALP) written by sales teams.”

In addition, Fuzzy Panda alleges that Globe Life executives ran a $43 million bribery and kickback scheme to make money from the company’s own recruits. The scheme allegedly involved executives’ concealing their ownership of an insurance license testing vendor (Xcel Testing) while directing recruits to Xcel to prepare for their licensing exam.

“We are investigating the propriety of Globe Life’s business practices,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Globe Life and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Globe Life investigation, read more »

Whistleblowers: Persons with non-public information regarding Globe Life should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

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Contact: Reed Kathrein, 844-916-0895

Source: Hagens Berman Sobol Shapiro LLP