Globe Life Inc (GL)

Globe Life Inc (GL) stock dropped by 53.14% due to a report from short seller Fuzzy Panda Research. The report alleged widespread insurance fraud within Globe Life (GL), prompting a significant market response.

• Allegations of Fraud: Fuzzy Panda Research claimed to have discovered evidence of extensive insurance fraud within Globe Life, including accusations of a kickback scheme involving executives. The report also suggested that Globe Life's sales teams had issued policies for deceased and fictitious customers.
• Impact on Business and Financials: According to the report, the alleged fraud has artificially inflated Globe Life's business growth and financial performance. It highlighted that about 60% of new business at Globe subsidiary American Income Life, which contributes significantly to Globe's profits, came from sales teams that were allegedly involved in fraudulent activities. These teams, the report claimed, achieved a 16% average growth in sales over the last four years, while "Clean & Non-questionable teams" experienced a decline in sales during the same period.