NEW YORK, May 01, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Texas on behalf of all persons and entities who purchased or otherwise acquired Globe Life Inc. f/k/a Torchmark Corporation (“Globe Life” or the “Company”) (NYSE: GL) securities between May 8, 2019 and April 10, 2024, inclusive (the “Class Period”). The Complaint in the lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that 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, the Complaint alleges that Defendants repeatedly attributed the Company’s consistent premium revenue growth “to increased agent count and productivity.” In addition, the Complaint also alleges that 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 Complaint further alleges that 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. According to the Complaint, the Fuzzy Panda 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 Complaint alleges that the investment research firm Fuzzy Panda uncovered evidence that Globe Life subsidiaries maintained a hostile workplace where sexual harassment, drug use, and sexual assault went unchecked.
Additionally, the Complaint alleges that 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.
Investors who purchased or otherwise acquired shares of Globe Life Inc. should contact the Firm prior to the July 1, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
