StockNews.AI
SLQT
StockNews.AI
7 hrs

Investors Sue SelectQuote (SLQT) After DOJ Intervenes in Kickback Lawsuit – Hagens Berman

1. A class-action lawsuit targets SelectQuote due to DOJ's intervention. 2. Stock price dropped 19% following the lawsuit announcement on May 1, 2025. 3. Allegations include false statements and illegal kickbacks related to Medicare Advantage sales. 4. Company’s stock is down over 40% in the last six months, indicating ongoing legal challenges. 5. Hagens Berman is investigating potential revenue inflation from deceptive practices.

6m saved
Insight
Article

FAQ

Why Very Bearish?

The ongoing legal issues and recent sharp stock drop point to severe investor anxiety. Historical cases show such lawsuits can lead to long-term value degradation, as seen in other healthcare firms facing similar allegations.

How important is it?

Legal issues directly threaten investor confidence and may diminish SLQT's operational capabilities. The scrutiny from the DOJ and class-action suits signals a critical inflection point for the company's market performance.

Why Long Term?

Legal proceedings can drag on for months or years, impacting stock perception. Past examples include Theranos and other firms facing protracted litigation that stunted recovery efforts.

Related Companies

HLTAONCNC
SAN FRANCISCO, Aug. 25, 2025 (GLOBE NEWSWIRE) -- A new securities class-action lawsuit has been filed against SelectQuote, Inc. (NYSE: SLQT) and its executives after the U.S. Department of Justice (DOJ) announced its intervention in a separate lawsuit against the company. This federal involvement triggered a sharp 19% decline in SelectQuote’s stock price on May 1, 2025, leading to significant investor losses. The lawsuit, known as Pahlkotter v. SelectQuote, Inc. et al., is on behalf of investors who purchased SelectQuote securities between September 9, 2020, and May 1, 2025. Hagens Berman urges SelectQuote investors who suffered substantial losses to submit your losses now. Class Period: Sept. 9, 2020 – May 1, 2025Lead Plaintiff Deadline: Oct. 10, 2025Visit: www.hbsslaw.com/investor-fraud/slqt Contact the Firm Now: SLQT@hbsslaw.com                                         844-916-0895 The Heart of the Allegations The securities complaint alleges that SelectQuote made false and misleading statements to investors by failing to disclose critical details about its business practices, particularly concerning its Medicare Advantage (MA) sales. While the company publicly claimed to provide "unbiased advice" and "unbiased comparison shopping" for MA plans, the lawsuit contends that SelectQuote secretly: Directed Medicare beneficiaries to specific insurers' plans based on compensation, not the customer's best interests.Received illegal kickbacks for steering beneficiaries toward particular plans.Violated federal laws and regulations, including the False Claims Act. These claims are based on the DOJ's complaint, which alleges that from 2016 through at least 2021, SelectQuote received tens of millions of dollars in illegal kickbacks. The DOJ also claims the company discriminated against less profitable beneficiaries and repeatedly directed customers to the highest-paying plans. SelectQuote’s stock price is down over 40% over the last six months, underscoring the significant impact of the legal challenges on the company’s value. Hagens Berman’s Investigation Hagens Berman is conducting a detailed investigation into whether SelectQuote’s revenues were artificially inflated by these alleged deceptive practices. “The DOJ’s involvement elevates these claims beyond simple business disputes and paints a stark picture of a company’s alleged actions. We’re scrutinizing whether the promised 'unbiased' model was just a public-facing narrative while a different, and illegal, story unfolded behind the scenes. The swift and severe stock drop speaks to the gravity of these newly revealed allegations,” said Reed Kathrein, the Hagens Berman partner leading the investigation. 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 BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.  Contact: Reed Kathrein, 844-916-0895

Related News