SelectQuote Faces Severe Legal Scrutiny Over Alleged Deceptive Sales Practices
SelectQuote Inc. (NYSE: SLQT) faces severe legal scrutiny following a whistleblower lawsuit alleging deceptive sales practices. The U.S. Department of Justice (DOJ) has intervened, leading to a significant drop in the company's share price.
The DOJ's complaint, filed on May 1, 2025, alleges that SelectQuote misled the market and customers about its business model and regulatory exposure. The lawsuit claims that the company received tens of millions of dollars in improper payments and discriminated against less profitable customers from 2016 through at least 2021. SelectQuote is accused of steering customers towards plans offering higher commissions, accepting illegal kickbacks, and violating federal statutes, including the False Claims Act.
Investors who suffered substantial losses are urged to submit their losses to Hagens Berman, a shareholder rights firm investigating whether SelectQuote's revenue was artificially inflated through deceptive conduct. The DOJ's action resulted in a 19% drop in SelectQuote's share price on the same day. Over the past six months, the stock has declined more than 40% due to investor concern over its legal exposure and potential reputational damage.
A securities class-action lawsuit, Pahlkotter v. SelectQuote Inc. et al., was filed on behalf of investors who purchased SelectQuote stock between September 9, 2020, and May 1, 2025. The deadline for lead plaintiff is October 10, 2025.
SelectQuote Inc. is under intense legal pressure following the DOJ's intervention in the whistleblower lawsuit. Investors are advised to monitor the situation closely and consider their legal options. The outcome of the investigation and lawsuit may significantly impact the company's future.
