SelectQuote (SLQT) Faces Investor Lawsuit After DOJ Steps into Medicare Sales Probe - Hagens Berman
SelectQuote (SLQT) Faces Investor Lawsuit After DOJ Steps into Medicare Sales Probe - Hagens Berman |
| [18-September-2025] |
SLQT Investors with Losses Encouraged to Contact Hagens Berman SAN FRANCISCO, Sept. 18, 2025 /PRNewswire/ -- SelectQuote Inc. (NYSE: SLQT), a digital insurance platform known for selling Medicare Advantage plans, is facing heightened legal scrutiny after the U.S. Department of Justice (DOJ) intervened in a whistleblower lawsuit alleging deceptive sales practices. The federal action triggered a sharp 19% drop in SelectQuote's share price on May 1, 2025, and has now led to a securities class-action lawsuit filed on behalf of investors.
The suit, Pahlkotter v. SelectQuote Inc. et al., covers investors who purchased SelectQuote stock between September 9, 2020, and May 1, 2025, and alleges that the company misled the market about its business model and regulatory exposure. Hagens Berman urges SelectQuote investors who suffered substantial losses to submit your losses now. Class Period: Sept. 9, 2020 – May 1, 2025 Lead Plaintiff Deadline: Oct. 10, 2025 Visit: www.hbsslaw.com/investor-fraud/slqt Contact the Firm Now: SLQT@hbsslaw.com Allegations of Kickbacks and Misrepresentation At the heart of the complaint are claims that SelectQuote misrepresented its Medicare Advantage sales practices. While the company publicly promoted its services as offering "unbiased advice" and "neutral plan comparisons," the lawsuit asserts that SelectQuote:
The DOJ's complaint alleges that from 2016 through at least 2021, SelectQuote received tens of millions of dollars in improper payments and discriminated against less profitable customers by directing them away from lower-margin plans. Market Fallout and Investor Impact The DOJ's involvement sent shockwaves through the market, with SelectQuote's stock plunging nearly 20% in a single day. Over the past six months, shares have declined more than 40%, reflecting investor concern over the company's legal exposure and potential reputational damage. The class-action lawsuit argues that SelectQuote's public statements failed to disclose material risks tied to its sales practices, leading investors to overvalue the company's growth prospects and revenue integrity. Hagens Berman Investigates Alleged Revenue Manipulation Shareholder rights firm Hagens Berman is investigating whether SelectQuote's revenue was artificially inflated through deceptive conduct. Reed Kathrein, a partner at the firm, commented: "The DOJ's intervention transforms this from a routine business dispute into a serious federal matter. We're examining whether SelectQuote's so-called 'unbiased' model was merely a façade for a kickback-driven sales engine." 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 |
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