03:43 PM EST, 12/04/2024 (MT Newswires) -- Globe Life ( GL ) on Wednesday issued a statement denying claims by short-seller Viceroy Research raised in a report regarding the operations of Globe's American Income Life unit.

Viceroy said that several AIL agencies, which account for more than 40% of AIL sales, "appear to have ceased operations, or commenced closures," since last month, without formal notice. Some AIL agents have moved either to other AIL churn agencies or AIL competitors or left the industry, according to the report.

The short seller alleged that Globe has failed to notify the market of such developments.

Globe refuted the allegations, saying Viceroy "has presented a false picture of AIL's presence across the country."

The company said it transitioned to a virtual business model following the onset of the pandemic and the number of AIL agents increased to more than 12,000 last month from over 8,000 in March 2020. Globe also clarified that every single business mentioned in the short seller's report is still operating.

"The short seller's misrepresentation of our strategy is yet another dishonest and cynical effort to harm the company's reputation, manufacture a drop in the stock price, and reap a short-term profit at the expense of our people, our investors, and the millions of individuals and families we protect," Globe said.

Shares of Globe fell 3.2% in recent trading.

Price: 105.98, Change: -3.51, Percent Change: -3.21