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Globe Life Inc. $GL shares plummeted 54%, wiping out $5 billion in market value, following a short report by Fuzzy Panda that accused the company of widespread insurance fraud. The report highlighted that third-party policy sellers known for committing insurance fraud contributed to over 60% of new business at Globe Life's American Income Life unit, leading to a stock decline that erased nine years of gains. The short sale recommendation by Fuzzy Panda also cited that Berkshire Hathaway began selling its Globe Life shares shortly after a February 2023 Business Insider story exposed shady business practices at the Arias Organization, a Globe Life agency. Earlier signs of trouble included a whistleblower suit by a former Globe Life executive in November 2023 and a Department of Justice probe opened in March 2024.
$GL wiped out 9 years of gains at the close today after it was accused of insurance fraud Short sellers alleged that third-party policy sellers known to have committed insurance fraud contributed over 60% of new business at Globe Life’s American Income Life unit https://t.co/O2W3ApHdaq
HOLY! GlobeLife, $GL, fell 50% over fraud concerns via Fuzzy Panda’s report. Right after the report was released, people piled into puts. One trader opened $500,000 in $GL $80 puts for May this AM. He exited for 1042% in 5 hours, turning $500k into +$5 million. https://t.co/0mDIwiX8eE
Globelife, $GL, was advertised as a top buy for some analysts yesterday. One day later, it is now down 50%. https://t.co/H2OCOzNxIh
