Quantcast

AFLAC Incorporated (AFL) Stock Dives on Fraud Allegations


Shutterstock photo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

AFLAC Incorporated (NYSE: AFL ) shares have been hit hard over reports of workplace fraud.

AFLAC Incorporated (AFL) The insurance giant has reportedly been exploiting its workers by pushing a high-pressure contract scheme on them, according to a Thursday report onĀ  The Intercept . Allegations have been made by current and former employees, along with three previously unreported lawsuits.

Aflac spokesman Jon Sullivan responded to these claims by saying, "these allegations are baseless and we will be filing to have them dismissed." The article making these claims is only the first in a series that will paint the picture of what employees had to say and what the lawsuits allege.

One of these claims is that Aflac misleads its new employees, exploiting them by classifying them as independent contractors, while also pressuring associates with sales goals that push workers to sell policies to customers without the latter's consents.

The article adds that the company is taking part in such practices in order to bring in income under any means necessary. These practices are apparently part of the way Aflac recruits its workers.

The insurer may be offering sales associates and contract positions with the promise that these workers will earn an unrealistic amount of money, with new hires only making a small percentage of these earnings.

Aflac then reportedly pushes sales associates to sell these policies to friends and relatives, while also making them targets to be recruited.

AFL stock fell more than 7.6% on Friday.

More From InvestorPlace

l

Compare Brokers

The post AFLAC Incorporated (AFL) Stock Dives on Fraud Allegations appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: AFL



More from InvestorPlace Media

Subscribe






InvestorPlace Media
Contributor:

InvestorPlace Media

Investing, Financial News










Research Brokers before you trade

Want to trade FX?