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Globe Life (NYSE:GL) stock faces a tumultuous day following allegations of insurance fraud in a scathing report by Fuzzy Panda.
According to the report, the entire company culture is under scrutiny, not just a few individuals, with claims of systemic insurance fraud surfacing from former executives.
One whistleblower purportedly sent over 200 emails exposing fraudulent activities within Globe Life. Fuzzy Panda’s undercover investigations lent weight to these allegations, painting a troubling picture of unethical practices such as offering cash and drugs to agents and coaching them to deceive regulators by falsifying their addresses.
Stock Plummets Amid Accusations
Fuzzy Panda also highlighted a series of sexual assault cases involving Globe Life employees, further darkening the company’s reputation. The report also referenced Warren Buffett divesting from the company after two decades, cautioning against backing “charlatans” in the insurance industry.
These revelations sent GL stock plummeting by 17.5% on Thursday morning, with trading volumes exceeding 6 million shares compared to the usual daily average of around 811,000 shares.
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As of the publication date, William White did not hold any positions in the securities discussed in this article. The views expressed are those of the author and abide by the InvestorPlace.com Publishing Guidelines.
