After falling 53% on Thursday due to short selling, Globelife stock rebounded about 20% on Friday morning. report Alleges multiple instances of insurance fraud.
Fuzzy panda research closed its short position in the Texas-based insurance company after it disclosed “extensive insurance fraud allegations that were clear and reported hundreds of times, yet ignored by management.” Disclosed.
Short sellers allege that Globe Life had insurance policies written for fictitious deceased individuals, forged signatures, and had funds withdrawn from customers’ bank accounts without their approval. It also alleges that fictitious bank accounts were used to fund fake insurance policies for employees to cover their bonuses.
Globe Life refuted the allegations in a statement Thursday, saying it was “driven solely by short-term profits.”
The company said, “After reviewing the report, we found that it was extremely misleading and confused the anonymous complaint with the reuse points imposed by the plaintiff law firm in order to force Globelife to settle.” It became clear,” he said.
CNBC could not independently verify the report’s claims.
