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SelectQuote investors sue after stock price drops 19% on DOJ intervention.
ByAinvest
Friday, Aug 15, 2025 10:58 am ET1min read
A securities class action lawsuit has been filed against SelectQuote (NYSE: SLQT) after its stock price dropped 19% following a US Department of Justice intervention in a lawsuit. The lawsuit seeks to represent investors who purchased SelectQuote securities between September 9, 2020 and May 1, 2025. Investors who suffered substantial losses are encouraged to submit their losses by October 10, 2025.
A securities class action lawsuit has been filed against SelectQuote Inc. (NYSE: SLQT) following a significant drop in its stock price. The lawsuit, filed in the United States District Court for the Southern District of New York, seeks to represent investors who purchased SelectQuote securities between September 9, 2020, and May 1, 2025.The lawsuit, captioned Pahlkotter v. SelectQuote, Inc., et al., Case No. 1:25-cv-06620, alleges that SelectQuote made materially false and misleading statements, as well as failed to disclose material adverse facts about its business, operations, and prospects. Specifically, the complaint alleges that SelectQuote directed Medicare beneficiaries to plans offered by insurers that best compensated it, regardless of the quality or suitability of the plans. Additionally, the lawsuit claims that SelectQuote received illegal kickbacks to steer beneficiaries to certain insurers and limit enrollment in competitors' plans.
The U.S. Department of Justice (DOJ) filed a False Claims Act complaint against SelectQuote on May 1, 2025, alleging that the company received tens of millions of dollars in illegal kickbacks from health insurance companies between 2016 and 2021. The DOJ also alleged that SelectQuote discriminated against beneficiaries deemed to be less profitable, including those with disabilities.
SelectQuote's stock price fell $0.61, or 19.2%, to close at $2.56 per share on May 1, 2025, following the DOJ's intervention. Since then, the price of SelectQuote shares has continued to decline amid the DOJ and class action lawsuits.
Investors who purchased SelectQuote securities during the class period are encouraged to submit their losses by October 10, 2025, to participate in the lawsuit. The deadline to ask the court to be appointed lead plaintiff in the case is October 10, 2025.
References:
[1] https://www.morningstar.com/news/business-wire/20250811153040/slqt-class-action-notice-the-law-offices-of-frank-r-cruz-files-securities-fraud-lawsuit-against-selectquote-inc
[2] https://www.globenewswire.com/news-release/2025/08/12/3131901/0/en/INVESTOR-ALERT-Class-Action-Lawsuit-Filed-on-Behalf-of-SelectQuote-Inc-SLQT-Investors-Holzer-Holzer-LLC-Encourages-Investors-With-Significant-Losses-to-Contact-the-Firm.html
[3] https://www.prnewswire.com/news-releases/selectquote-slqt-faces-investor-securities-class-action-after-stock-dropped-19-amid-department-of-justice-alleges-false-claims-act-violations--hagens-berman-302528518.html
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