Insurer Globe Life receives informal inquiry from SEC on recent short-seller reports (updated)

Globe Life

21/05/2024 13:16

(Adds background on short seller attacks in paragraphs 2 and 3,
details from the filing in paragraphs 4 and 5)
       May 21 (Reuters) - Globe Life  GL.N  has received an
informal inquiry from the U.S. Securities and Exchange
Commission (SEC), requesting information related to recent
short-seller reports making allegations about the life insurer,
according to a regulatory filing on Tuesday.
    Short seller Viceroy Research said in April it had conducted
an extensive investigation into the company and its subsidiary
American Income Life (AIL), and concluded that "fraudulent,
dishonest, and misleading sales tactics are core to AIL's
operations." 
    Fuzzy Panda has also highlighted multiple instances of
insurance fraud, allegations that Globe Life has denied. 
    Globe Life's management at present does not believe that it
is reasonably possible or probable that SEC's inquiry will
result in a material loss and said it intends to fully cooperate
with the regulator. 
    The filing showed that the SEC has not notified the company
of a formal investigation yet.

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Shilpi Majumdar and Shinjini Ganguli)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))