#United States #New York #Securities Fraud #Pomerantz #MediaAlpha

Pomerantz Law Firm Investigates MediaAlpha, Inc.

Pomerantz LLP has started an investigation into possible claims against MediaAlpha, Inc. (NYSE: MAX) on behalf of its investors. Recent developments prompted the firm to look into the matter, especially surrounding claims that the company may have engaged in unlawful business practices or securities fraud.

On June 24, 2024, a critical report released by Wolfpack Research accused MediaAlpha of being involved in consumer fraud, specifically targeting its health insurance lead generation segment. According to the report, MediaAlpha has been using deceptive advertisements and misleading websites to lure consumers into exchanging their personal details for health insurance quote requests, which, it turns out, would lead to further exploitation. Wolfpack's alarming findings suggested that as many as 78% of MediaAlpha's lead-buying partners could be operating fraudulent health insurance scams or not aligning with telemarketing regulations. This live investigation has significantly shaken investor confidence, as evidenced by an immediate drop in MediaAlpha's stock price, which fell by 11.84% in just two trading sessions, closing at $14.29 on June 25, 2024.

The situation compounded on November 4, 2024, when MediaAlpha disclosed that it received a communication from the Federal Trade Commission (FTC) staff, indicating that the FTC was prepared to file a complaint against the company. Allegations included misleading consumers about affiliations with government entities and deceptive advertising practices regarding health insurance and personal information handling. Following this revelation, MediaAlpha suffered a more severe setback, with its shares plummeting 27.7% in a single day to $11.62 on November 5, 2024.

In a turn of events, MediaAlpha announced on August 6, 2025, its agreement to settle the FTC claims with a hefty penalty of $45 million. The FTC's complaint unveiled an unsettling reality where MediaAlpha coerced consumers into providing personal information under false pretenses of delivering genuine insurance quotes. Instead, the company monetized this data by selling leads to telemarketers.

The legal firm Pomerantz LLP, which specializes in corporate and securities class action litigation, aims to support affected investors by gathering evidence for class action lawsuits. As an established and credible entity founded over 85 years ago, Pomerantz is committed to defending victims of securities malpractice and ensuring they receive restitution. Investors with losses related to their MediaAlpha investments are encouraged to contact Danielle Peyton for more information about joining the collective legal efforts.

This dramatic shift in MediaAlpha's standing, marked by serious allegations of misconduct and significant financial baggage, represents a critical moment for the company and its stakeholders. The long-lasting impact of these claims on MediaAlpha's reputation, stock stability, and overall business practices is yet to be fully understood, but it undoubtedly raises essential questions about corporate accountability in the digital age. Investors are urged to remain vigilant as the investigation unfolds and to seek legal representation to protect their interests and rights.

Pomerantz LLP continues to be a leading figure in championing investor rights, and with multiple offices across North America and Europe, they are poised to provide comprehensive support and insight as this investigation progresses.