According to the Complaint, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions concerning: (i) Globe Life’s consistent premium revenue growth, particularly from American Income Life Insurance Company; and (ii) Globe Life’s Code of Business Conduct and Ethics (the “Code of Conduct”).  Specifically, Defendants repeatedly attributed the Company’s consistent premium revenue growth “to increased agent count and productivity.”  In addition, Globe Life’s Code of Conduct stated, among other things, that “[t]he Company is committed to providing an inclusive and welcoming environment,” that “[v]iolence and threatening behavior are not permitted,” and that “[t]he use of illegal drugs in the workplace will not be tolerated.”

The truth was revealed on April 11, 2024, when investment research firm Fuzzy Panda published a report alleging that, since 2017, Globe Life had engaged in widespread insurance fraud. The report alleged that several Globe Life subsidiaries were underwriting policies for dead and fictitious people, as well as adding policies to existing customers’ accounts without their consent. In addition, the investment research firm uncovered evidence that Globe Life subsidiaries maintained a hostile workplace where sexual harassment, drug use, and sexual assault went unchecked.

On this news, Globe Life’s stock price fell $55.76 per share, or 53.19%, to close at $49.17 per share on April 11, 2024.

If you wish to serve as lead plaintiff, you must move the Court no later than July 1, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

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