SelectQuote Lawsuit Filed Over Alleged Securities Laws Violations.
ByAinvest
Tuesday, Oct 14, 2025 8:08 am ET1min read
SLQT--
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. The DOJ's complaint, which was filed on August 11, 2025, alleges that SelectQuote received tens of millions of dollars in improper payments and discriminated against less profitable customers by directing them away from lower-margin plans [1].
The lawsuit further asserts that SelectQuote misrepresented its Medicare Advantage sales practices, steering customers toward plans from insurers offering the highest commissions and accepting illegal kickbacks in exchange for preferential treatment. The company publicly promoted its services as offering "unbiased advice" and "neutral plan comparisons," but the lawsuit claims these were merely a façade for a kickback-driven sales engine [2].
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.
Investors who purchased shares of SelectQuote Inc. (NYSE: SLQT) prior to September 2020 and continue to hold any of those shares should contact the Shareholders Foundation, Inc. for further information and options. The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service that provides research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal news [1].
A lawsuit has been filed against SelectQuote, Inc. (NYSE: SLQT) for alleged securities laws violations. Investors who purchased shares prior to September 2020 and still hold them have options to contact the Shareholders Foundation at [email protected] or +1(858) 779 - 1554. The plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that SelectQuote directed Medicare beneficiaries to the best-compensating insurers, regardless of plan quality or suitability.
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 has 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. The DOJ's complaint, which was filed on August 11, 2025, alleges that SelectQuote received tens of millions of dollars in improper payments and discriminated against less profitable customers by directing them away from lower-margin plans [1].
The lawsuit further asserts that SelectQuote misrepresented its Medicare Advantage sales practices, steering customers toward plans from insurers offering the highest commissions and accepting illegal kickbacks in exchange for preferential treatment. The company publicly promoted its services as offering "unbiased advice" and "neutral plan comparisons," but the lawsuit claims these were merely a façade for a kickback-driven sales engine [2].
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.
Investors who purchased shares of SelectQuote Inc. (NYSE: SLQT) prior to September 2020 and continue to hold any of those shares should contact the Shareholders Foundation, Inc. for further information and options. The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service that provides research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal news [1].
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