Viceroy Research is short Globe Life (NYSE:GL) following an extensive investigation of the company and its subsidiary American Income Life (AIL).

We tip our hat to Fuzzy Panda, who produced a solid report outlining the extent of fraud at Globe Life. This report will push the envelope on what is already a thrilling story, with minimal overlap:

• Viceroy have conducted a far more extensive number of background checks on AIL's most profitable agents, which uncovered allegations of kidnapping, assault, and child grooming.
• There are an extremely high number of allegations of fraud by AIL and its agents, many of which are disclosed within other cases of unfair dismissal or sexual harassment/assault. Viceroy have pulled dozens of detailed statements from plaintiffs, defendant, and witness statements to paint a fuller picture of the pervasive nature of fraud at AIL.
• This report will close the loop on various open-ended Fuzzy Panda thrillers, including the circumstances leading to the dismissal and withdrawal of cases against Globe Life, AIL, and their agents.
• Viceroy has accessed thousands of Globe Life agency training and marketing materials, concluding that fraudulent, dishonest, and misleading sales tactics are core to AIL's operations.
• Viceroy's financial analysis will show how AIL's modus operandi affects its churn, structural cash flow issues, the increasing risk of employee misclassification, and the existence of offshore captive reinsurers that appear to be providing Globe Life liquidity against impaired assets.

Fuzzy Panda's report can be found here.

This report is Viceroy's longest investigation by far, and is compiled on the review of over 11,000 documents and near 40GB of data. Strap in. Globe Life is extremely exposed to the unfolding allegations of fraud and shocking company culture at AIL. It is hard to believe the Department of Justice and EEOC investigations will not turn up significant findings, given what Viceroy have been able to find publicly.

Given the number and seriousness of the issues at Globe Life, and the ongoing investigations and their financial situation, we do not believe that a target price can be assigned at this time.