SelectQuote Faces Securities Class Action Lawsuit After DOJ Intervention

A securities class action lawsuit has been filed against SelectQuote after the US Department of Justice intervened in a separate lawsuit. The DOJ's involvement caused a 19% drop in SelectQuote's stock price. The class action seeks to represent investors who bought or acquired SelectQuote securities between September 9, 2020, and May 1, 2025. The lawsuit alleges false and misleading statements, as well as illegal kickbacks. Investors who suffered substantial losses are urged to submit their losses by October 10, 2025.

A securities class action lawsuit has been filed against SelectQuote (NYSE: SLQT) following the U.S. Department of Justice (DOJ) intervention in a separate lawsuit. The DOJ's involvement led to a significant 19% drop in SelectQuote's stock price on May 1, 2025. The class action, known as Pahlkotter v. SelectQuote, Inc. et al., No. 1:25-cv-06620 (S.D.N.Y.), seeks to represent investors who bought or acquired SelectQuote securities between September 9, 2020, and May 1, 2025.

The lawsuit centers on allegations that SelectQuote made false and misleading statements to investors and failed to disclose critical information about its business practices, particularly concerning its Medicare Advantage (MA) sales. The complaint alleges that the company directed Medicare beneficiaries to certain insurers' plans based on compensation rather than the plan's quality or suitability for the customer, received illegal kickbacks for steering beneficiaries to specific insurers, and failed to comply with applicable laws and regulations. The DOJ's complaint, filed on May 1, 2025, supported these allegations, claiming that SelectQuote received "tens of millions of dollars" in "illegal kickbacks" for steering beneficiaries to certain plans.

SelectQuote's stock price has continued to fall since the news broke, highlighting the significant impact of the DOJ and class action lawsuits on the company's value. Investors who purchased or acquired SelectQuote securities during the class period are urged to submit their losses by October 10, 2025, to participate in the lawsuit.

Leading plaintiffs' rights law firm Hagens Berman is actively investigating the claims against SelectQuote on behalf of investors who have suffered losses. The firm is focused on the extent to which the company's alleged practices may have inflated its financial results, leading to investor losses.

Reed Kathrein, the Hagens Berman partner spearheading the firm's investigation, commented on the situation, stating, "SelectQuote's public statements claiming 'unbiased' advice now appear to be in direct conflict with the DOJ's allegations. We are investigating whether these alleged deceptive practices may have directly led to inflated revenues and investor losses."

Investors are encouraged to contact Hagens Berman at 844-916-0895 or email SLQT@hbsslaw.com for more information and to submit their losses. Whistleblowers with non-public information regarding SelectQuote are also urged to consider their options to help in the investigation or take advantage of the SEC Whistleblower program.

Another law firm, Rosen Law Firm, has also issued a notice to investors, reminding them of the October 10, 2025, lead plaintiff deadline. Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. The firm has achieved significant settlements in the past, including the largest ever securities class action settlement against a Chinese company.

Investors who wish to join the SelectQuote class action can visit [Rosen Law Firm's website](https://rosenlegal.com/submit-form/?case_id=39510) or contact Phillip Kim, Esq., toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action.

References:
[1] https://www.morningstar.com/news/globe-newswire/9515637/selectquote-slqt-securities-lawsuit-what-investors-need-to-know-hagens-berman
[2] https://www.morningstar.com/news/globe-newswire/9516534/rosen-recognized-investor-counsel-encourages-selectquote-inc-investors-to-secure-counsel-before-important-deadline-in-securities-class-action-slqt