SelectQuote (SLQT) Faces Investor Scrutiny After DOJ Alleges False Claims Act Violations – Hagens Berman

Core Viewpoint - SelectQuote's share price dropped over 19% following a lawsuit filed by the U.S. Department of Justice, alleging violations of the False Claims Act related to its business practices in the Medicare Advantage market [1][3]. Group 1: Lawsuit and Allegations - The U.S. Department of Justice filed a lawsuit against SelectQuote and other insurance brokers, claiming they violated the False Claims Act [1]. - The investigation focuses on SelectQuote's disclosures regarding its sales practices, particularly in its Senior business offering Medicare Advantage plans [2]. - Allegations include that SelectQuote directed Medicare beneficiaries to plans that provided the highest kickbacks to brokers, rather than acting in the best interest of the beneficiaries [5]. Group 2: Financial Impact - Following the announcement of the lawsuit, SelectQuote's shares fell by over 19% on May 1, 2025 [1][3]. - The lawsuit raises concerns about the potential inflation of SelectQuote's financial results due to alleged steering practices [4]. Group 3: Whistleblower Information - Whistleblowers with non-public information regarding SelectQuote are encouraged to assist in the investigation, with potential rewards of up to 30% of any successful recovery made by the SEC [4].