Shareholder Alert: Bernstein Litowitz Berger & Grossmann LLP Announces the Filing of Securities Class Action Lawsuit Against Globe Life Inc. f/k/a Torchmark Corporation
30 Abril 2024 - 10:40PM
Business Wire
Today, prominent investor rights law firm Bernstein Litowitz
Berger & Grossmann LLP (“BLB&G”) filed a class action
lawsuit in the U.S. District Court for the Eastern District of
Texas alleging violations of the federal securities laws by Globe
Life Inc. f/k/a Torchmark Corporation (“Globe Life” or the
“Company”) and certain of the Company’s current and former senior
executives (collectively, “Defendants”). The action is brought on
behalf of all persons or entities that purchased or otherwise
acquired shares of Globe Life common stock between May 8, 2019, and
April 10, 2024, inclusive (the “Class Period”).
BLB&G filed this action on behalf of its client, City of
Miami General Employees’ & Sanitation Employees’ Retirement
Trust, and the case is captioned City of Miami General Employees’
& Sanitation Employees’ Retirement Trust v. Globe Life Inc.
f/k/a Torchmark Corporation, No. 24-cv-376 (E.D. Tex.). The
complaint is based on an extensive investigation and a careful
evaluation of the merits of this case. A copy of the complaint is
available on BLB&G’s website by clicking here.
Globe Life’s Alleged
Fraud
Globe Life is an insurance company offering a wide range of
insurance products, including low-cost life insurance policies that
offer comparatively lower payouts. Globe Life operates through five
wholly owned subsidiaries, the largest of which, by both premiums
collected and number of sales agents employed, is American Income
Life Insurance Company (“AIL”).
The complaint alleges that, 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 AIL; 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.” As a result
of these misrepresentation, Globe Life common stock traded at
artificially inflated prices during the Class Period.
The truth was revealed on April 11, 2024, when an investment
research firm 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. As a
result of these disclosures, the price of Globe Life common stock
declined precipitously.
If you wish to serve as Lead Plaintiff for the Class, you must
file a motion with the Court no later than July 1, 2024, which is
the first business day on which the U.S. District Court for the
Eastern District of Texas is open that is 60 days after the
publication date of April 30, 2024. Any member of the proposed
Class may seek to serve as Lead Plaintiff through counsel of their
choice, or may choose to do nothing and remain a member of the
proposed Class.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Scott R. Foglietta of BLB&G at 212-554-1903, or via e-mail at
scott.foglietta@blbglaw.com.
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm
advising institutional investors on issues related to corporate
governance, shareholder rights, and securities litigation. Since
its founding in 1983, BLB&G has built an international
reputation for excellence and integrity and pioneered the use of
the litigation process to achieve precedent-setting governance
reforms. Unique among its peers, BLB&G has obtained several of
the largest and most significant securities recoveries in history,
recovering over $40 billion on behalf of defrauded investors. More
information about the firm can be found online at
www.blbglaw.com.
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Scott R. Foglietta Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor New York, New York 10020
(212) 554-1903 scott.foglietta@blbglaw.com