In 2024, the investment firm Fuzzy Panda Research issued a report which described insurance fraud by a subsidiary of Globe Life, Inc., alleging that several Globe Life subsidiaries were underwriting policies for dead and fictitious people, as well as adding policies to existing users’ accounts without their consent. The report also depicted a work environment where sexual harassment, illegal drug use, and sexual assault were routinely permitted—or even perpetrated—by company management. That same day, Globe’s stock price plummeted by 53%, falling from $104.93 to a $49.17.
As a result of the Fuzzy Panda report, the Securities and Exchange Commission and the Department of Justice investigated Globe for more than a year, closing their files without taking enforcement action in July 2025. But that doesn’t mean Globe’s legal troubles are over.
A class action and two individual cases by Globe shareholders have been filed in federal court, alleging that management misled investors by hiding the fraud and abusive working conditions and instead publicly claiming that employees adhered to a Code of Conduct. The plaintiffs, which include a major public employee pension fund, claim that as a result of these misrepresentations, Globe stock traded at an artificially-inflated price and that investors were damaged when the stock crashed. The suit seeks to impose liability not only on the insurance giant, but also on a number of individual officers and directors.
Globe and the individual defendants have asked the court to dismiss the class action without requiring them to answer the complaint, and the two other cases have been stayed until the judge rules on Globe’s application. (City of Miami General Employees’ & Sanitation Employees’ Retirement Trust v. Globe Life, 4:24-cv-00376, E. D. Tex.)
What this means to you:
Even if Globe prevails in the shareholder litigation, look at its costs and losses!
- Reputation. Harassment allegations damage a company’s reputation with customers and the public at large.
- Regulatory Scrutiny. Two federal agencies have already investigated Globe.
- Expense. Globe has undoubtedly already incurred hundreds of thousands of dollars in attorney fees in the investigations and lawsuits.
- Productivity. Officers, directors, and employees who are embroiled in litigation and investigations are a serious productivity drain.
- Employee Turnover and Recruitment. Harassment and hostile environment claims can lead to lower morale and higher turnover and make it difficult to recruit replacements in this tight job market.
Corporate culture starts at the top. When there are problems within an organization, they usually begin with the leadership. Sometimes the rot happens swiftly; other times, it’s a slow and agonizing decay. No matter which, bad leadership will undoubtedly infect the entire organizational framework and culture.
At Fair Measures, we specialize in creating respectful workplaces for businesses by training executives, managers, and employees about how to create shared organizational culture based on values, policies, and laws. We offer our courses—led by experienced attorney-trainers–both in the classroom and by interactive webinar.
Learn how our Managing Within the Law, Respectful Workplace, and other programs can help your organization prevent and address harassment. Call us at 800-458-2778 or email us at training@fairmeasures.com. 2025 training dates are still available!
Updated 09-08-2025
Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.
