Insurance provider Aflac came under fire in a Jan. 11 article by The Intercept claiming independent contractor misclassification and other allegations of fraud. The company controls “virtually every aspect of the work experience,” according to the article’s discussion of misclassification. However, Aflac issued a statement on Jan. 12 saying the allegations are false.
“Recent media stories regarding Aflac contain false allegations made by a very small group of independent contractors,” according to the statement. “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.”
The statement continued: “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.”
The allegations affected the company’s share price, according to Seeking Alpha.