The Duck Quacks Back

Here’s the press release:

Statement from Aflac Incorporated regarding recent false allegations

COLUMBUS, Ga., Jan. 12, 2018 /PRNewswire/ — Recent media stories regarding Aflac contain false allegations made by a very small group of independent contractors. Aflac intends to aggressively fight these allegations beginning with filing for their dismissal. The unfounded articles allege claims including insider trading, fraudulent sales and financial manipulation. The Company has investigated these claims and found them to be without merit.

Mr. Conroy and the individuals involved with these unfounded claims are not employees of Aflac and as such can be part-time and licensed to sell with other companies as well. Mr. Conroy has formerly served as an Aflac district sales coordinator and has realized financial benefits through his association with Aflac. It should also be noted that these allegations are coming from fewer than 10 individuals among up to 70,000 independent contractors and brokers licensed to sell Aflac products. The insider trading, fraudulent sales and financial manipulation claims alleged by the individuals have been investigated by the Company and an independent special committee of the Company’s board of directors.

Aflac has a long history of operating with transparency and integrity, having been named by Fortune Magazine as one of the Best Companies to Work For for 19 consecutive years and a World’s Most Ethical Company by Ethisphere for 11 consecutive years.

From The Fly:

Aflac selloff on Intercept article an overreaction, says Evercore ISI

The Intercept’s article today on Aflac is “filled with hyperbole, which reduces the credibility of the claims being brought,” Evercore ISI analyst Thomas Gallagher tells investors in a research note. The analyst admits, however, that it is unclear to know whether the fraud allegations by former employees have any merit. Gallagher views the 8% selloff today in shares of Aflac as an overreaction. The stock is now pricing in a “reasonably high probability that there are systemic issues here,” the analyst contends. He has an In Line rating on Aflac with an $87 price target. The stock in afternoon trading is down 8%, or $7.58, to $84.11

Some tweets:

This is actually false, unless one bad regional manager did this. I'm a broker offering many carriers, along with Aflac, and they've been one of the best companies to work with–not just for agent compensation, but for client claims.

— Natasha Harmon (@ShesNatashaJean) January 12, 2018

I have been an Aflac agent for over 15 years. I have never been forced to purchase any policies. I have never been told it was an employee benefit. Disability is not even a product that agents look at purchasing in the first place due to our 1099 status.

— Brian Demarest (@brian_demarest) January 12, 2018

Posted by Eddy Elfenbein on January 12th, 2018 at 3:36 pm

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