Globe Life (GL) Embroiled in Fraud Allegations, DOJ Probe, and Investor Lawsuit - Hagens Berman

Core Insights - Globe Life Inc. is facing serious allegations of fraud at its subsidiary American Income Life (AIL), with claims of over $200 million in fraudulent life insurance premiums written by AIL sales teams under the leadership of CEO Steve Greer and President Dave Zophin [1][4] - A federal investigation by the Department of Justice (DOJ) is underway, focusing on AIL's sales tactics, with subpoenas issued in late 2023 [2] - A securities class action lawsuit has been filed against Globe Life, alleging misleading statements and failure to disclose critical information regarding the fraud and a culture of sexual harassment at AIL [3][4] Allegations of Fraud - The fraudulent practices include issuing policies for deceased or fictitious individuals, forging signatures, unauthorized withdrawals from customer accounts, and generating fake policies to meet performance targets [8] - A potential bribery and kickback scheme involving $43 million has been uncovered, linked to Globe Life executives concealing ownership of an insurance licensing testing vendor [5] Impact on Stock and Reputation - Following the emergence of these allegations, Globe Life's stock price plummeted by $55.76, approximately 53%, on April 11, 2024 [9] - The company is also facing scrutiny from another short-seller, Viceroy Research, which is investigating whether Globe Life concealed widespread fraudulent practices at AIL [6] Additional Concerns - Background checks on AIL's top-performing agents revealed serious allegations, including kidnapping and assault, alongside a high number of fraud accusations related to wrongful termination and sexual harassment claims [10]