AFLAC’s Fraud Charges 3.5 Years On

In early 2018, the Intercept ran a series of articles attacking AFLAC (AFL). I thought the charges were exaggerated.

This is what I wrote:

The allegations, if true, are disappointing. However, nothing I’ve seen so far has me concerned for AFLAC’s future.

First, let me say that I’m hardly an independent observer. I’ve owned AFLAC’s stock for many years, and I’ve admired the company.

Also, The Intercept has a political bent to their reporting. I’m reading this with my eyes open.

But most of what I’ve read so far is what I’d call the unseemly byproduct of running a large and profitable enterprise.

For example, the sales jobs described and very tough and demanding. That’s not a surprise. Perhaps AFLAC makes the jobs seem better than they are, but that’s a long way from an Enron-type scam. It’s not difficult for them to revamp their recruitment process.

Any big company will have lawsuits brought against them. If you read what the lawyers have to say, without any explanation from the company, the picture can look quite ugly. That’s what lawyers do.

In the movie Raising Arizona, the police asked Nathan Arizona, Sr., if he had any disgruntled employees. He answered, “Hell, they’re all disgruntled. I ain’t running no damn daisy farm.”

At the time, it was a big deal. The stock plunged more than 7% on the news. I’m revisiting this years later to show you how things like this often blow over. Since the article, AFLAC is up by more than 36%, including dividends. The stock just touched another new high today.

Posted by on June 7th, 2021 at 1:12 pm


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