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Investor Alert: Investigation into SelectQuote

Faruqi & Faruqi, LLP, a prominent national securities law firm, has initiated an investigation into possible claims against SelectQuote, Inc. This action comes as shareholders who incurred losses exceeding $75,000 after investing in SelectQuote between September 9, 2020, and May 1, 2025, are encouraged to recognize their legal rights and potential courses of action.

In light of a federal securities class action filed against the Company, investors are advised that they have until October 10, 2025, to seek the designation of lead plaintiff. The firm believes that SelectQuote's executive practices may have violated federal securities laws, leading to significant investor losses and misrepresentation of their business practices.

Allegations Overview

The complaint asserts several allegations against SelectQuote and its executives, including claims of false and misleading statements and a failure to disclose critical information. Key points from the allegations include:
1. Misleading Medicare Advice: The Company reportedly directed Medicare beneficiaries towards insurance plans primarily based on the compensation it received, rather than the quality or appropriateness of the plans.
2. Biased Coverage Comparisons: Contrary to their public statements, SelectQuote purportedly did not provide unbiased options for Medicare Advantage insurance plans.
3. Illegal Kickbacks: The allegations emphasize claims that SelectQuote received unlawful kickbacks to favor certain insurers, limiting the choices available to beneficiaries, particularly those deemed less profitable due to disabilities.
4. Regulatory Vulnerability: The Company is suggested to be at risk of significant regulatory actions due to its conduct, which contravenes established laws, regulations, and contractual obligations.
5. Materially Misleading Statements: SelectQuote's assurances about its operational integrity and growth prospects are alleged to have been fundamentally misleading, lacking a solid basis to support such positive portrayals.

On May 1, 2025, following a complaint filed by the U.S. Department of Justice, SelectQuote's shares plummeted by 19.2%, leading to substantial financial losses for its investors. This drastic decline highlights the potential ramifications of allegations and the timing of significant corporate announcements on stock performance.

Next Steps for Investors

Investors who suffered losses exceeding the stated amount are urged to contact Josh Wilson, Senior Partner at Faruqi & Faruqi, to discuss their options and the potential for recourse. The firm has a strong record of helping investors recover funds and navigate complex legal landscapes.

Those interested can visit Faruqi & Faruqi's website for further information on the ongoing investigation. Additionally, whistleblowers or individuals with inside information are encouraged to step forward and share their knowledge with the firm.

Your rights as an investor are paramount, and taking prompt action can help ensure that these rights are protected in the wake of potential misconduct. Whether to proceed as a lead plaintiff or maintain a passive role in the class action, it is critical that affected investors stay informed and engaged in these legal proceedings.

Conclusion

Faruqi & Faruqi is committed to pursuing justice for investors affected by SelectQuote’s alleged fraudulent behavior and mismanagement. The firm stands ready to guide investors through this challenging time, ensuring that their voices are heard in the legal arena.