Bradley attorney Stephen Hinton was quoted in the The Street on news that the Securities and Exchange Commission will review allegations that Aflac Inc. misled investors about the insurance company's sales and revenue. The investigation is in response to a complaint filed by former independent contractors that claims that the company inflated a sales metric and changed its timeline for recording revenue to improve its earnings report.
Shareholders have good reason to be nervous, according to Hinton. While the investigation isn't out of the ordinary, it is unusual for so many of its details to be made public, Hinton explained.
"Aflac has been very proactive," Hinton said. "From an investor standpoint they're doing all the right things but that doesn't mean that the allegations aren't true or that the SEC isn't looking into something even beyond what we know."
Depending on its [investigation] results, it could force the company to revise its financial statements or have a change in management, Hinton said.
The complete article, “SEC Probing Aflac over Allegations It Misled Investors on Sales,” appeared in The Street on May 31, 2018.