SelectQuote (SLQT) Faces Investor Securities Class Action After Stock Dropped 19% Amid Department of Justice Alleges False Claims Act Violations - Hagens Berman
SelectQuote (SLQT) Faces Investor Securities Class Action After Stock Dropped 19% Amid Department of Justice Alleges False Claims Act Violations - Hagens Berman |
| [13-August-2025] |
SAN FRANCISCO, Aug. 13, 2025 /PRNewswire/ -- After investors in SelectQuote (NYSE: SLQT) saw the price of their shares tumble over 19% on May 1, 2025 when the U.S. Department of Justice announced it had intervened in a lawsuit against the company, a securities class action lawsuit, styled Pahlkotter v. SelectQuote, Inc. et al., No. 1:25-cv-06620 (S.D.N.Y.) has been filed. The suit seeks to represent investors who purchased or otherwise acquired SelectQuote securities between September 9, 2020 and May 1, 2025.
Hagens Berman urges SelectQuote investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys. Class Period: Sept. 9, 2020 – May 1, 2025 SelectQuote (SLQT) Securities Class Action: The lawsuit is focused on the propriety of SelectQuote's disclosures concerning its sales and other business practices, particularly with respect to its Senior business which offers Medicare Advantage ("MA") plans written by health insurance companies such Aetna, Anthem, and Humana ("insurers"). In the past, SelectQuote has claimed "[o]ur agents are trained to offer unbiased advice in order to be more aligned to the specific needs of each customer" and Senior "provides unbiased comparison shopping for Medicare Advantage ('MA') and Medicare Supplement ('MS') insurance plans[.]" The complaint accuses SelectQuote of having made false and misleading statements while omitting crucial information to investors. More specifically, the complaint alleges that, unknown to investors, SelectQuote did not disclose that it:
Investors learned the truth on May 1, 2025, when the DOJ filed a complaint alleging that from 2016 through at least 2021 SelectQuote received "tens of millions of dollars" in "illegal kickbacks" from health insurers for steering Medicare beneficiaries into certain insurers' plans. The DOJ further alleged that, in exchange, SelectQuote discriminated against beneficiaries deemed to be less profitable, including those with disabilities. In contrast to the company's claims to provide "unbiased" comparison coverage, the DOJ said that, in fact, SelectQuote "repeatedly directed Medicare beneficiaries to the plans offered by insurers that paid them the most money, regardless of the quality or the suitability of the insurers' plans." Unsurprisingly, this news sent SelectQuote shares spiraling 19% lower on May 1, 2025. Since May 1, 2025, the price of SelectQuote shares has continued to decline amid the DOJ and class action lawsuits. "We're concerned about SelectQuote's alleged steering practices and the extent to which the practices, if true, may have inflated the company's financial results," said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in SelectQuote and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the SelectQuote case and our investigation, read more » Whistleblowers: Persons with non-public information regarding SelectQuote should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SLQT@hbsslaw.com. About Hagens Berman
SOURCE Hagens Berman Sobol Shapiro LLP | ||
Company Codes: NYSE:SLQT |
View original content to download multimedia:
