
Core Viewpoint - SelectQuote Inc. is under increased legal scrutiny following 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][4]. Legal Issues - The U.S. Department of Justice (DOJ) has intervened in a whistleblower lawsuit against SelectQuote, which claims the company engaged in misleading sales practices related to Medicare Advantage plans [1][3]. - The lawsuit, Pahlkotter v. SelectQuote Inc. et al., includes investors who purchased shares between September 9, 2020, and May 1, 2025, alleging that SelectQuote misrepresented its business model and regulatory risks [2][5]. Allegations of Misconduct - The complaint alleges that SelectQuote misrepresented its sales practices, claiming to provide "unbiased advice" while actually directing customers towards higher-commission plans and accepting illegal kickbacks [3][7]. - The DOJ's complaint indicates that from 2016 to at least 2021, SelectQuote received tens of millions of dollars in improper payments and discriminated against less profitable customers [3][7]. Market Reaction - Following the DOJ's involvement, SelectQuote's stock price fell nearly 20% in a single day, and shares have declined over 40% in the past six months due to investor concerns about legal exposure and reputational damage [4][5]. Investigative Actions - Hagens Berman, a shareholder rights firm, is investigating whether SelectQuote's revenue was artificially inflated through deceptive practices, transforming the situation into a serious federal matter [6].