SelectQuote (SLQT) Faces Investor Lawsuit After DOJ Steps into Medicare Sales Probe - Hagens Berman

Core Viewpoint - SelectQuote Inc. is facing significant legal challenges following a whistleblower lawsuit alleging deceptive sales practices, which has resulted in a 19% drop in its share price and a subsequent class-action lawsuit from investors [1][4]. Legal Issues - The U.S. Department of Justice (DOJ) has intervened in a lawsuit against SelectQuote, claiming the company misrepresented its Medicare Advantage sales practices and received improper payments from 2016 to 2021 [3][7]. - The class-action lawsuit, Pahlkotter v. SelectQuote Inc. et al., includes investors who purchased stock between September 9, 2020, and May 1, 2025, alleging that SelectQuote misled the market regarding its business model and regulatory risks [2][5]. Market Reaction - Following the DOJ's involvement, SelectQuote's stock experienced a nearly 20% decline in a single day, and shares have fallen over 40% in the past six months due to investor concerns about legal exposure and reputational damage [4][5]. Allegations of Misconduct - The lawsuit claims that SelectQuote directed customers towards higher-commission plans, accepted illegal kickbacks, and violated federal statutes, including the False Claims Act [6][7]. - Hagens Berman is investigating whether SelectQuote's revenue was artificially inflated through deceptive practices, suggesting that the company's claims of providing "unbiased advice" may have been misleading [6].