Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against SelectQuote, Inc. (SLQT)

Core Viewpoint - A securities class action lawsuit has been filed against SelectQuote, Inc. for allegedly misleading investors regarding its business practices and compliance with laws [1][2]. Allegations - The lawsuit claims that SelectQuote directed Medicare beneficiaries to insurers that compensated the company the most, regardless of the quality of the plans [2]. - It is alleged that SelectQuote did not provide unbiased comparisons for Medicare Advantage insurance plans and received illegal kickbacks from insurers [2]. - The company is accused of violating applicable laws and regulations, making it vulnerable to regulatory and legal sanctions, including claims under the False Claims Act [2][3]. Legal Developments - On May 1, 2025, the U.S. Department of Justice filed a False Claims Act complaint against SelectQuote, alleging the company received "tens of millions of dollars" in illegal kickbacks from health insurance companies from 2016 to at least 2021 [3]. - The DOJ's complaint states that SelectQuote made materially false claims about offering unbiased coverage comparisons while actually directing beneficiaries to the most profitable plans [3]. Market Reaction - Following the DOJ's announcement, SelectQuote's stock price dropped by $0.61, or 19.2%, closing at $2.56 per share on May 1, 2025 [3].