Investors Sue SelectQuote Amid DOJ Kickback Allegations

2025-09-02 companies

San Francisco, Tuesday, 2 September 2025.
Investors have filed a lawsuit against SelectQuote following the DOJ’s intervention in a kickback case, raising concerns about the company’s business practices and potential financial impacts.

Background of the Legal Action

The securities class-action lawsuit filed against SelectQuote, Inc. (NYSE: SLQT) follows the U.S. Department of Justice’s (DOJ) intervention in a separate lawsuit accusing the company of illegal kickback practices. Investors who purchased SelectQuote securities between September 9, 2020, and May 1, 2025, allege that the company made false and misleading statements by failing to disclose significant details about its business operations, particularly in relation to its Medicare Advantage sales [1][3].

Allegations and Impact on Stock Price

The DOJ claims that between 2016 and at least 2021, SelectQuote engaged in practices that resulted in receiving tens of millions of dollars in illegal kickbacks from health insurers. These claims have significantly impacted the company’s stock price, which has fallen over 40% in the last six months, reflecting investor concerns over the ongoing legal challenges [1][4][6].

Investor Response and Legal Deadlines

Multiple law firms, including Hagens Berman and Rosen Law Firm, are encouraging investors with substantial losses to join the class-action lawsuit. The deadline for investors to file for lead plaintiff status in the class action is October 10, 2025. This deadline is crucial for those looking to potentially recover losses stemming from SelectQuote’s alleged illegal activities and misleading statements [1][5][6].

Broader Implications for the Healthcare Sector

The lawsuit against SelectQuote not only affects the company but also raises broader concerns about transparency and ethical practices within the healthcare sector, particularly among companies involved in Medicare Advantage plans. Legal experts emphasize the need for improved governance and transparency in insurtech firms to mitigate similar risks and protect investor interests [7].

Sources

SelectQuote lawsuit DOJ intervention