SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 21, 2002
March 19, 2002
TORCHMARK CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-9052 63-0780404
(State or other (Commission File No.) (I.R.S. Employer ID No.)
jurisdiction
of incorporation)
2001 Third Avenue South, Birmingham, Alabama 35233
(Address of principal executive offices)
Registrant's telephone number, including area code: (205) 325-4200
None
(Former name or former address, if changed since last report)
Index of Exhibits page 2.
Total number of pages in this report is 3.
Item 5. Other Events and Regulation FD Disclosure.
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On March 19, 2002, a jury in Jefferson County, Alabama Circuit Court awarded $50
million compensatory damages to Torchmark Corporation's (Torchmark) subsidiary,
United Investors Life Insurance Company (United) against Waddell & Reed
Financial Inc. and four other Waddell & Reed affiliates (Waddell) in United
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Investors Life Insurance Company v. Waddell & Reed Financial, Inc., et al, Case
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No. CV 00-2720. Waddell is a former subsidiary of Torchmark that was spun off to
shareholders in 1998 following an initial public offering. Waddell is also a
former distributor of United's variable annuity and life insurance products.
The lawsuit arose out of a dispute with Waddell concerning whether Waddell was
entitled to certain compensation on United's in-force block of variable annuity
business and also involved an alleged scheme by Waddell to orchestrate a mass
replacement, by improper and unlawful means, of United's variable annuity
policies with policies issued by Nationwide Life and Annuity Insurance Company
in an aggregate amount exceeding $650 million. Waddell filed counterclaims
against United as well as against Torchmark and a former Torchmark executive.
The counterclaims against Torchmark and its former executive were later
dismissed and Waddell's remaining counterclaims were rejected by the jury.
United's claims for additional injunctive relief prohibiting unlawful future
policy replacements by Waddell remain to be decided by the Circuit Court.
Item 7. Financial Statement and Exhibits.
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(a) Financial Statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
None.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
TORCHMARK CORPORATION
Date: March 21, 2002 /s/ Carol A. McCoy
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Carol A. McCoy,
Vice President, Associate Counsel and
Secretary
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