Federal Judge dismisses lawsuit vs Globe Life Inc. subsidiary

Federal Judge dismisses lawsuit vs Globe Life Inc. subsidiary | Insurance Business America

Legal Insights

Federal Judge dismisses lawsuit vs Globe Life Inc. subsidiary

Former employee alleged wrongful termination

Legal Insights

By
Camille Joyce Lisay

A federal judge has dismissed a lawsuit filed by a former employee of American Income Life (AIL), a subsidiary of Globe Life Inc., alleging wrongful termination after reporting unethical business practices at the carrier.

Judge Hala Jarbou of the US District Court in the Western District of Michigan issued the ruling on October 11, also dismissing AIL’s counterclaim against the former vice president of field operations at AIL, Scott Dehning.

According to the case, as reported on by AM Best, Dehning was employed at AIL between May 2012 and May 2023 when he was terminated without cause in violation of Michigan’s whistleblower protections. He claimed that AIL fired him due to his complaints about “unethical and potentially illegal” business practices of the company to the Michigan Department of Insurance in September 2022.

AIL denied these allegations and filed a countersuit requesting restitution for all damages inflicted by the case, which included $150,000 paid in settlement of claims of harassment against Dehning.

The carrier alleged that Dehning had been in a relationship with an independent contractor and tried to get her hired full-time by AIL in exchange for maintaining the relationship. In October 2022, Dehning withdrew his endorsement of her as a candidate.

AIL concluded that Dehning’s conduct violated its harassment policies, according to Judge Jarbou’s decision. The company terminated him in May 2023 and later settled with the contractor.

“Dehning has failed to demonstrate a genuine issue of material fact regarding his MWPA claim; he is unable to establish the causal connection between his protected activity and his termination,” the judge wrote. “Therefore, the court will grant AIL’s motion for summary judgment. Likewise, AIL has failed to establish entitlement to equitable indemnification.”

This legal development comes amid recent cybersecurity concerns for Globe Life Inc, disclosing that it received communications from an “unknown threat actor” attempting to demand money in exchange for not disclosing information held and used by the carrier and its independent agents.

Globe Life is currently conducting an investigation, activating its threat response plan with the counsel and external cybersecurity experts. The information is alleged to be related to certain customers and leads traceable to the American Life Insurance Co. subsidiary.

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