Insurer Globe Life says its audit found no financial reporting discrepancies
Adds company comment in paragraph 3 and background throughout
July 22 (Reuters) -Globe Life GL.N said on Monday an independent audit committee did not identify any matter requiring adjustments to its previously issued financial statements or related disclosures with the U.S. securities regulator.
The company conducted the audit after allegations by short-sellers Fuzzy Panda Research and Viceroy Research earlier this year led to a rout in its stock.
"The independent review was thorough and focused on allegations that raised questions about the accuracy of the company's financial statements and disclosures," Globe Life said in a regulatory filing.
The company's shares were up 1.7% in light premarket trading.
In April, the insurer's shares plunged to their lowest in over a decade after Fuzzy Panda Research disclosed a short position in the company, alleging multiple instances of insurance fraud.
Later that same month, Viceroy Research also revealed a short position in the company. Globe Life previously denied the allegations raised in both reports.
In May, Globe Life received an informal inquiry from the U.S. Securities and Exchange Commission related to the reports. The filing at the time showed the regulator has not notified the company of a formal investigation yet.
Globe Life's shares are down nearly 30% so far this year and about 16% from the close of trading on April 10, a day before the first short-seller report.
Reporting by Manya Saini in Bengaluru; Editing by Shounak Dasgupta
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