SelectQuote (SLQT) Plunges 9.25% as DOJ Intensifies Probe into Alleged Illegal Payments

The share price fell to its lowest level since May 2024 today, with an intraday decline of 9.25%.

SelectQuote (NYSE: SLQT) has faced intense scrutiny following an investigation by Berman Tabacco into alleged illegal payments from health insurers Humana and Aetna between 2016 and 2021. The firm claims the payments, potentially exceeding $80 million, were designed to incentivize the company to steer Medicare customers toward these insurers. The probe, unsealed in May 2025, expanded after the U.S. Attorney’s Office for Massachusetts joined claims initially raised by a whistleblower. The allegations implicate SelectQuote’s senior executives and board, raising questions about governance and fiduciary duties. The Department of Justice’s intervention has heightened legal risks, with shares dropping 20% following the filing of its complaint, reflecting investor concerns over potential penalties and reputational damage.

The case underscores broader risks in the healthcare sector, where financial incentives may influence consumer choices. The prolonged nature of the alleged misconduct—spanning five years—and delayed public disclosure have exacerbated doubts about SelectQuote’s transparency. Berman Tabacco’s focus on corporate accountability aligns with trends in securities litigation, where boards face increasing liability for unethical practices. The outcome could set precedents for similar cases, particularly in insurance and healthcare. With the investigation ongoing, investors remain cautious, as unresolved legal and governance issues threaten to prolong volatility and erode confidence in the company’s leadership and operations.