In re Globe Life Inc. f/k/a Torchmark Corporation Stockholder Derivative Litigation

CourtDistrict Court, E.D. Texas
DecidedApril 17, 2026
Docket4:24-cv-00993
StatusUnknown

This text of In re Globe Life Inc. f/k/a Torchmark Corporation Stockholder Derivative Litigation (In re Globe Life Inc. f/k/a Torchmark Corporation Stockholder Derivative Litigation) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Globe Life Inc. f/k/a Torchmark Corporation Stockholder Derivative Litigation, (E.D. Tex. 2026).

Opinion

United States District Court EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

IN RE GLOBE LIFE INC. f/k/a § TORCHMARK CORPORATION § Civil Action No. 4:24-cv-993 STOCKHOLDER DERIVATIVE § Judge Mazzant LITIGATION § LEAD

MEMORANDUM OPINION AND ORDER Pending before the Court are two competing leadership motions. Having considered the motions and the relevant pleadings, the Court finds that: 1. Plaintiff Plymouth County Retirement Association’s Motion to Appoint Plymouth County Retirement Association as Lead Plaintiff and to Revise Appointment of Lead Counsel Pursuant to Fed. R. Civ. P. 23.1 (Dkt. #23) should be GRANTED as set forth herein; and

2. Plaintiff Catherine M. Sugarbaker Family Trust’s Motion to Vacate Current Leadership Structure and Appoint New Co-Lead Counsel for Plaintiffs (Dkt. #29) should be DENIED as set forth herein. BACKGROUND This consolidated shareholder derivative suit arises from alleged misconduct on behalf of a company’s board of directors and its executive officers.1 Several plaintiffs brought suit on behalf of the nominal defendant, Globe Life Inc. f/k/a Torchmark Corporation (“Globe Life”). Competing plaintiffs and their law firms—each qualified to litigate the case—seek leadership roles. At an early stage, the Court granted an unopposed motion appointing the Rosen Firm, P.A. (“Rosen”) and Glancy Prongay & Murray LLP (“GPM”) to serve as co-lead counsel (Dkt. #4). Since then, several other law firms have thrown their hats in the ring, asking the Court to consider its leadership structure anew.

1 Following the Court’s January 3, 2025 and January 8, 2026 Orders, the following cases were consolidated into the lead case: 4:25-cv-1246, 4:25-cv-1274, 4:25-cv-993, and 4:24-cv-1011 (Dkt. #4; Dkt. #18). Plaintiff Plymouth County Retirement Association (“Plymouth”) asks the Court to name Scott+Scott Attorneys at Law LLP (“Scott+Scott”) and Bleichmar Fonti & Auld LLP (“BFA”) as sole co-lead counsel (Dkt #23). Plymouth also asks that the Court appoint Steckler Wayne & Love

PLLC as liaison counsel. Additionally, Plymouth requests to be the lead plaintiff in the case. Plaintiff The Catherine M. Sugarbaker Family Trust (“Sugarbaker”) has its own preferences. In Sugarbaker’s view, Robbins LLP (“Robbins”) and Sbaiti & Company PLLC (“Sbaiti”) should be co-lead counsel (Dkt. #29). Sugarbaker does not address liaison counsel. As to the lead plaintiff position, Sugarbaker argues that a lead plaintiff is not required, but that the Court should name Sugarbaker if the Court does choose to appoint one.

Following Sugarbaker’s motion, Plymouth filed a response in further support of its proposed leadership structure (Dkt. #34). Plaintiff Jui Cheng Hsiao (“Hsiao”) (Rosen and GPM’s client) filed a response to both Plymouth and Sugarbaker’s motions (Dkt. #37). There, Hsiao argued that changes to the existing leadership structure are unwarranted, and that a lead plaintiff is unnecessary. Sugarbaker also filed a response to Plymouth’s motion (Dkt. #39). Shortly thereafter, Plymouth requested a hearing (Dkt. #42). On March 25, 2026, the Court held the hearing and considered arguments from Hsiao, Plymouth, and Sugarbaker about the

competing leadership motions. Since then, Hsiao and Sugarbaker joined forces. On April 10, 2026, they jointly proposed that Robbins and Sbaiti (counsel for Sugarbaker) serve as co-lead counsel, and that GPM and Rosen (Hsiao’s counsel and current co-lead counsel) serve on an executive committee (Dkt. #59). Plymouth responded and objected to the proposal (Dkt. #60). The leadership motions are now ripe for adjudication.2

2 Defendants have not expressed any preference regarding the leadership structure. LEGAL STANDARD The Court, “if it sees fit, may appoint one or more attorneys as liaison counsel, lead counsel, or trial counsel for . . . consolidated cases and can assign the designated lawyers specific

responsibilities.” Weller v. Wilkinson, No. CV 19-1723-MN-JLH, 2020 WL 2514079, at *2 (D. Del. May 15, 2020) (citation modified). “The selection of lead counsel in a shareholder derivative action filed in federal court is left to the sound discretion of the Court.” KBC Asset Mgmt. NV ex rel. Chemed Corp. v. McNamara, 78 F. Supp. 3d 599, 607 (D. Del. 2015); see In re Wendy’s Co. S’holder Derivative Action, 44 F.4th 527, 532 (6th Cir. 2022) (“[T]he selection of lead counsel is one of the means by which a district court, through its inherent power, manages proceedings.”).

The Court also has the discretion to appoint lead plaintiffs in a shareholder derivative suit. In re Comverse Tech., Inc. Derivative Litig., No. 06-CV-1849 (NGG)(RER), 2006 WL 3761986, at *1 (E.D.N.Y. Sept. 22, 2006), objections overruled, No. 06-CV-1849 (NGG)(RER), 2006 WL 3511375 (E.D.N.Y. Dec. 5, 2006). Appointing a lead plaintiff is not required by statute in a derivative suit, but “derivative actions must comply with Rule 23.1 of the Federal Rules of Civil Procedure, which requires . . . that a plaintiff in a derivative action ‘fairly and adequately represent the interests of the shareholders or members similarly situated in enforcing the right of the corporation or

association.’” Id. (quoting FED. R. CIV. P. 23.1(a)). The central goal of the appointment of lead counsel or lead plaintiffs is to “appoint the representative who will best serve the interests of the corporation and its shareholders and most effectively prosecute the litigation.” King v. VeriFone Holdings, Inc., 12 A.3d 1140, 1151 (Del. 2011). ANALYSIS The Court must determine what leadership structure would best serve the interests of Globe Life and its shareholders. To do so, the Court will first outline the factors that will guide its

decision. Then, the Court will apply the factors to evaluate the competing applications. Although it is a close call, the Court ultimately concludes that Plymouth presents the superior application. I. What Factors Should the Court Consider When Appointing Lead Counsel? There is no statutory authority setting forth the criteria the Court must apply when appointing lead counsel in a shareholder derivative suit. In re Comverse Tech., Inc. Derivative Litig., 2006 WL 3761986, at *2; 2 MCLAUGHLIN ON CLASS ACTIONS § 9:13, Westlaw (database updated

Nov. 2025) (“Unlike the existence of statutory authority under the Private Securities Litigation Reform Act . . ., under the federal rule there is no statutory or rule- based authority for appointment of a lead plaintiff or counsel in a shareholder derivative action.”). Indeed, the parties do not cite (nor has the Court independently located) binding precedent setting forth such criteria. In the Court’s view, the factors outlined in Delaware Court of Chancery Rule 23.1 are comprehensive and adequately capture the criteria developed in the case law to guide the appointment of lead counsel. Therefore, the Court will consider the following factors:

(i) counsel’s competence and experience; (ii) counsel’s access to the resources necessary to prosecute the litigation; (iii) the quality of the pleading; (iv) counsel’s performance in the litigation to date; (v) the proposed leadership structure; (vi) the derivative plaintiff’s relationship to and interest in the entity; (vii) any conflicts between counsel or the derivative plaintiff and the entity; and (viii) any other matter pertinent to ability of counsel or the derivative plaintiff to fairly and adequately represent the interests of the entity in the derivative action. DEL. CT. CH. R. 23.1(c)(3)(A). II.

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Aronson v. Lewis
473 A.2d 805 (Supreme Court of Delaware, 1984)
King v. VeriFone Holdings, Inc.
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Aptim Corporation v. Dorsey McCall
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KBC Asset Management NV ex rel. Chemed Corp. v. McNamara
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In re Globe Life Inc. f/k/a Torchmark Corporation Stockholder Derivative Litigation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-globe-life-inc-fka-torchmark-corporation-stockholder-derivative-txed-2026.