SelectQuote(US:SLQT) Globenewswire·2025-10-08 22:35Core Viewpoint - SelectQuote Inc. is under increased legal scrutiny due to a whistleblower lawsuit alleging deceptive sales practices, leading to a significant drop in its stock price and a subsequent class-action lawsuit from investors [1][5][6] Legal Issues - The U.S. Department of Justice (DOJ) has intervened in a lawsuit claiming SelectQuote engaged in misleading sales practices related to Medicare Advantage plans, resulting in improper payments and discrimination against less profitable customers [4][8] - The class-action lawsuit, Pahlkotter v. SelectQuote Inc. et al., includes investors who purchased shares between September 9, 2020, and May 1, 2025, alleging that the company misrepresented its business model and regulatory risks [2][6] Market Impact - Following the DOJ's involvement, SelectQuote's stock price fell nearly 20% on May 1, 2025, and has since declined over 40% in the past six months, reflecting investor concerns about legal exposure and reputational damage [5][6] Allegations of Misconduct - The lawsuit claims SelectQuote misrepresented its services as providing unbiased advice while allegedly steering customers towards higher-commission plans and accepting illegal kickbacks [4][8] - The DOJ's complaint indicates that SelectQuote's actions may have violated federal statutes, including the False Claims Act [8]