Summary
Aflac Inc. (AFL) filed a Form 8-K on January 16, 2018, disclosing information regarding a special litigation committee (SLC) formed to investigate allegations made by a group of independent sales contractors. The committee, composed of independent board members and represented by independent counsel, was established in July 2017. This filing makes public the first report issued by the SLC. Investors should note that the SLC has commenced a second investigation into additional, related claims raised by derivative plaintiffs after the initial report's completion in September 2017. Aflac anticipates the second investigation will conclude soon, with its report expected to be released before the filing of the Annual Report on Form 10-K in late February 2018. The company has included standard forward-looking statement disclaimers, highlighting the uncertainties inherent in litigation and the investigation process.
Key Highlights
- 1Aflac has established a Special Litigation Committee (SLC) of independent Board members to investigate allegations by independent sales contractors.
- 2The first report from the SLC, formed in July 2017, is now publicly available.
- 3A second SLC investigation has commenced to address additional, related claims by derivative plaintiffs.
- 4Aflac expects the second SLC investigation report to be released before the end of February 2018.
- 5The company is committed to transparency regarding the investigation.
- 6The filing includes cautionary statements about forward-looking information and litigation risks.