Important Alert for Shareholders of SelectQuote, Inc. Regarding Class Action Lawsuit
On August 21, 2025, it was officially announced that Wolf Haldenstein Adler Freeman & Herz LLP has initiated a class action lawsuit against SelectQuote, Inc. (NYSE: SLQT) in the United States District Court for the Southern District of New York. The lawsuit involves all individuals and entities that acquired SelectQuote securities during the period from September 9, 2020, to May 1, 2025. Shareholders are urged to take immediate action to participate in this legal fight.
The complaint claims that SelectQuote and its executives provided misleading information, significantly impacting investors' financial well-being. The core allegations are serious, asserting that the company directed Medicare beneficiaries toward insurance plans that offered the highest commissions to SelectQuote, rather than plans that would best meet the customers' actual needs. This practice raises ethical questions about the company's insurance advisory role, suggesting a blatant disregard for client welfare in favor of profit.
Moreover, SelectQuote reportedly failed to deliver unbiased comparisons of Medicare Advantage plans, which could have enabled beneficiaries to make well-informed decisions. The company allegedly accepted kickbacks from certain insurers, prohibiting fair competition and failing to comply with existing laws and contracts. Such accusations indicate a substantial breach of trust, undermining the entire purpose of insurance advisement which should prioritize consumer interests.
The seriousness of these actions is reflected in the fallout that followed a significant announcement from the U.S. Department of Justice (DOJ) on May 1, 2025. The DOJ accused SelectQuote of violating the False Claims Act by accepting illegal kickbacks from insurers between 2016 and 2021, amounting to tens of millions of dollars. This alarming revelation included allegations that SelectQuote collaborated with major insurers to prioritize their profit margins over clients, specifically discriminating against less profitable beneficiaries such as those with disabilities. Consequently, the DOJ's findings pointed to misleading claims about unbiased coverage comparisons, a cornerstone of SelectQuote's business practice, when in fact, they were guiding customers toward higher-paying insurance options.
Following these revelations, the market reacted unfavorably, leading to a drastic drop in SelectQuote's stock price. On the day the DOJ announcement was made, the stock plummeted 19.2%, which equated to a loss of $0.61, settling at just $2.56 per share. This decline highlights the immediate financial repercussions these legal matters have had on the company's investors.
Investors now have until October 10, 2025, to act as lead plaintiffs in this class action lawsuit. Wolf Haldenstein Adler Freeman & Herz LLP, a reputable law firm with a rich history since 1888 in securities litigation, is dedicated to ensuring justice for investors who suffered financial losses due to the alleged misrepresentations by SelectQuote.
For shareholders who have experienced losses or possess information relevant to this case, contacting Wolf Haldenstein is imperative for both potential recovery and support through this legal process. Investors can reach the firm via phone at (800) 575-0735 or (212) 545-4774, or through email at [email protected] The firm encourages timely communication as they prepare to navigate the complexities of this securities litigation.
In today's volatile market landscape, transparency and accountability should be the top priority for companies, especially those in sectors that significantly impact the public, like insurance. The ongoing litigation against SelectQuote may serve as a critical reminder of the importance of ethical conduct within the financial framework, emphasizing that protecting stakeholder interests is a shared responsibility that includes comprehensive oversight and regulation. As this legal battle unfolds, the potential ramifications for SelectQuote could serve as a pivotal learning moment for the entire industry, reinforcing the imperative for companies to prioritize integrity alongside profit.
The complaint claims that SelectQuote and its executives provided misleading information, significantly impacting investors' financial well-being. The core allegations are serious, asserting that the company directed Medicare beneficiaries toward insurance plans that offered the highest commissions to SelectQuote, rather than plans that would best meet the customers' actual needs. This practice raises ethical questions about the company's insurance advisory role, suggesting a blatant disregard for client welfare in favor of profit.
Moreover, SelectQuote reportedly failed to deliver unbiased comparisons of Medicare Advantage plans, which could have enabled beneficiaries to make well-informed decisions. The company allegedly accepted kickbacks from certain insurers, prohibiting fair competition and failing to comply with existing laws and contracts. Such accusations indicate a substantial breach of trust, undermining the entire purpose of insurance advisement which should prioritize consumer interests.
The seriousness of these actions is reflected in the fallout that followed a significant announcement from the U.S. Department of Justice (DOJ) on May 1, 2025. The DOJ accused SelectQuote of violating the False Claims Act by accepting illegal kickbacks from insurers between 2016 and 2021, amounting to tens of millions of dollars. This alarming revelation included allegations that SelectQuote collaborated with major insurers to prioritize their profit margins over clients, specifically discriminating against less profitable beneficiaries such as those with disabilities. Consequently, the DOJ's findings pointed to misleading claims about unbiased coverage comparisons, a cornerstone of SelectQuote's business practice, when in fact, they were guiding customers toward higher-paying insurance options.
Following these revelations, the market reacted unfavorably, leading to a drastic drop in SelectQuote's stock price. On the day the DOJ announcement was made, the stock plummeted 19.2%, which equated to a loss of $0.61, settling at just $2.56 per share. This decline highlights the immediate financial repercussions these legal matters have had on the company's investors.
Investors now have until October 10, 2025, to act as lead plaintiffs in this class action lawsuit. Wolf Haldenstein Adler Freeman & Herz LLP, a reputable law firm with a rich history since 1888 in securities litigation, is dedicated to ensuring justice for investors who suffered financial losses due to the alleged misrepresentations by SelectQuote.
For shareholders who have experienced losses or possess information relevant to this case, contacting Wolf Haldenstein is imperative for both potential recovery and support through this legal process. Investors can reach the firm via phone at (800) 575-0735 or (212) 545-4774, or through email at [email protected] The firm encourages timely communication as they prepare to navigate the complexities of this securities litigation.
In today's volatile market landscape, transparency and accountability should be the top priority for companies, especially those in sectors that significantly impact the public, like insurance. The ongoing litigation against SelectQuote may serve as a critical reminder of the importance of ethical conduct within the financial framework, emphasizing that protecting stakeholder interests is a shared responsibility that includes comprehensive oversight and regulation. As this legal battle unfolds, the potential ramifications for SelectQuote could serve as a pivotal learning moment for the entire industry, reinforcing the imperative for companies to prioritize integrity alongside profit.
Topics Financial Services & Investing）
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