SLQT INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces Opportunity to Lead Class Action Lawsuit
Did you purchase SelectQuote, Inc. (SLQT) securities between September 9, 2020, and May 1, 2025? If so, you may be affected by a recently announced class action lawsuit. Investor rights law firm Bronstein, Gewirtz & Grossman, LLC has issued an alert regarding SelectQuote, Inc. (NYSE: SLQT), a digital insurance platform, and the opportunity for investors to potentially lead the class action lawsuit. This alert comes amidst growing concerns about SelectQuote’s business practices and regulatory compliance, highlighted by a significant stock drop and intervention by the U.S. Department of Justice (DOJ).
Understanding the SelectQuote (SLQT) Class Action Lawsuit
A class action lawsuit has been filed against SelectQuote, alleging violations of federal securities laws. The lawsuit aims to recover damages on behalf of investors who purchased or acquired SelectQuote securities during the period between September 9, 2020, and May 1, 2025. The core of the complaint revolves around allegations that SelectQuote made materially false and/or misleading statements and failed to disclose crucial adverse facts about the company’s business, operations, and future prospects.
Key Allegations Against SelectQuote
The lawsuit specifically alleges that SelectQuote failed to disclose the following:
- Biased Medicare Plan Recommendations: SelectQuote allegedly directed Medicare beneficiaries to insurance plans that offered the highest compensation to SelectQuote, irrespective of the plan’s quality or suitability for the beneficiary’s individual needs. This practice contradicts the company’s claim of offering unbiased advice.
- Lack of Impartial Comparison Shopping: The lawsuit claims that SelectQuote did not provide unbiased comparison shopping for Medicare Advantage insurance plans, further undermining their promise of consumer-centric service.
- Illegal Kickbacks: SelectQuote is accused of receiving illegal kickbacks from certain insurers in exchange for steering Medicare beneficiaries towards their plans and limiting enrollment in competitors’ plans.
- Non-Compliance with Laws and Regulations: As a result of the alleged practices, SelectQuote is accused of failing to comply with applicable laws, regulations, and contractual provisions.
- Vulnerability to Regulatory Sanctions: The company’s conduct allegedly made it vulnerable to regulatory and legal sanctions, including potential violations of the False Claims Act.
The DOJ Intervention and Stock Price Decline
The lawsuit gained further momentum when the U.S. Department of Justice (DOJ) filed a False Claims Act complaint against SelectQuote. The DOJ alleged that SelectQuote received “tens of millions of dollars” in “illegal kickbacks” from health insurance companies between 2016 and at least 2021 in exchange for steering Medicare beneficiaries to enroll in those insurers’ plans.
This news had an immediate and negative impact on SelectQuote’s stock price. On May 1, 2025, the company’s stock price plummeted by $0.61, or 19.2%, closing at $2.56 per share on unusually heavy trading volume. This significant drop reflects investor concern over the company’s legal exposure and potential reputational damage.
What This Means for SLQT Investors
If you purchased SelectQuote securities during the specified class period (September 9, 2020 – May 1, 2025), you may be eligible to participate in the class action lawsuit. Being part of the class action allows you to potentially recover financial losses incurred as a result of the alleged securities law violations.
Opportunity to Lead the Class Action
Bronstein, Gewirtz & Grossman, LLC, has specifically announced that SelectQuote investors have the opportunity to lead the class action lawsuit. Serving as a lead plaintiff can give you a greater voice in the litigation process, including the ability to influence the direction of the case and the settlement negotiations.
However, it’s important to note: Several law firms have announced similar alerts and opportunities to lead the class action, and the deadline to seek appointment as lead plaintiff was October 10, 2025.
Understanding the Implications of the Allegations
The allegations against SelectQuote raise serious questions about the company’s business practices and its commitment to providing unbiased advice to consumers. The alleged scheme of prioritizing financial incentives over the best interests of Medicare beneficiaries is a significant breach of trust and a potential violation of consumer protection laws.
If proven true, these allegations could have far-reaching consequences for SelectQuote, including:
- Substantial Financial Penalties: The company could face significant fines and penalties from regulatory agencies.
- Damage to Reputation: The negative publicity surrounding the lawsuit could damage SelectQuote’s reputation and erode consumer trust.
- Loss of Business: The company could lose business from insurers and consumers who are unwilling to work with a company accused of unethical practices.
- Increased Regulatory Scrutiny: SelectQuote could face increased scrutiny from regulatory agencies in the future.
Advice for Investors
Given the complexities of securities litigation, it is crucial for affected investors to seek legal counsel from experienced attorneys who can assess their individual circumstances and advise them on the best course of action.
Consider the following:
- Review your investment records: Determine the dates and amounts of your SelectQuote purchases and sales during the class period.
- Consult with a securities attorney: Discuss your potential legal options and the possibility of joining the class action lawsuit.
- Stay informed: Keep abreast of developments in the case and any relevant regulatory actions.
Disclaimer: This blog post provides general information and should not be construed as legal advice. If you have specific questions or concerns about the SelectQuote class action lawsuit, please consult with a qualified attorney.