Aflac is a Fortune 500 company servicing more than 50 million people worldwide. The Company is authorized to conduct insurance business in all 50 states, the District of Columbia, several U.S. territories and Japan. Aflac offers voluntary insurance policies designed to supplement traditional health insurance and protect individuals from depletion of assets and loss-of-income. Its products include insurance plans for accidents, cancer, critical illness/care, hospital indemnity, fixed-benefit dental, vision care, life and short-term disability.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:
(i) Aflac hired its sales associates under false promises of high compensation packages and worklife-balance;
(ii) Aflac misclassified its employees as independent contractors to reduce costs associated with unemployment insurance taxes and employment benefits; (iii) Aflac manipulated its average weekly producer equivalent metric to fabricate growth; (iv) consequently, Aflac violated its Code of Conduct and corporate social responsibility standards, and (v) as a result of the foregoing, Aflac’s public statements were materially false and misleading at all relevant times.