Shares of Aflac are under pressure following an article published by The Intercept on Thursday, January 11, which outlined allegations made by nine former employees of the insurance company. WHAT’S NOTABLE: The former Aflac employees allege that there is fraud and abuse across almost every aspect of the company. The article that revealed the allegations also cited three lawsuits that were previously unreported, and indicated the company’s management and board knew about the claims and did not disclose any information to shareholders beyond vague statements about lawsuits. The report added that Aflac spokesman Jon Sullivan response was that the company “will not comment on pending litigation.” WHAT’S NEW: Bloomberg reported that during a phone call on January 12, Sullivan said, “These charges are baseless and we will be filing to have them dismissed.” PRICE ACTION: Shares of Aflac are down 6.06% to $86.13 per share during late morning trading.
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