Globe Life Must Fight Investors’ Fraud, Misconduct Claims (1)

Globe Life Inc. shareholders advanced their lawsuit alleging the insurance conglomerate concealed relying on fraudulent practices to boost its financial growth before a record stock drop.

The investors adequately alleged securities fraud claims, Judge Amos L. Mazzant said Monday. The US District Court for the Eastern District of Texas judge denied Globe Life’s bid to toss the lawsuit, but didn’t pinpoint what allegations allowed the shareholders meet the pleading standards to advance their lawsuit.

Globe Life’s stock price plummeted more than 53% on April 11, 2024 when a short seller accused the company of widespread misconduct and insurance fraud, including ...