Important Update on SelectQuote Class Action Lawsuit - SLQT
Faruqi & Faruqi Explains Class Action for SelectQuote Investors
Faruqi & Faruqi, LLP, a reputable national securities law firm, is currently guiding investors through a significant class action lawsuit involving SelectQuote, Inc. This case has garnered attention, particularly with a lead plaintiff deadline set for October 10, 2025.
Overview of SelectQuote and the Class Action
SelectQuote, known for its insurance services, has recently faced scrutiny regarding its practices. Investors who purchased shares between September 9, 2020, and May 1, 2025, may be impacted by the allegations in the class action. This lawsuit centers around accusations that the company misled investors regarding its business practices and regulatory compliance.
Allegations Against SelectQuote
The lawsuit asserts that SelectQuote and its leadership failed to disclose crucial information regarding their operations, including:
- The direction of Medicare beneficiaries to certain plans based primarily on compensation rather than quality.
- A lack of unbiased comparisons in their Medicare Advantage insurance offerings.
- Receiving kickbacks to steer clients toward specific insurers while limiting choices from competitors.
- Non-compliance with relevant laws and regulations, exposing the company to potential legal actions.
Key Dates for Investors
As the situation unfolds, it is vital for investors to be aware of important dates, especially the upcoming October 10, 2025, deadline for taking on the role of lead plaintiff. This is crucial for those wishing to take an active stance in the litigation proceedings.
How to Participate in the Class Action
Investors looking to join the action are encouraged to contact the partner at Faruqi & Faruqi, Josh Wilson, at 877-247-4292 or 212-983-9330 (Ext. 1310). Taking on the lead plaintiff role allows individuals to actively oversee litigation on behalf of the class.
Impact of DOJ Involvement
The U.S. Department of Justice recently filed a complaint against SelectQuote, revealing that the company may have received tens of millions of dollars in illegal kickbacks over several years. This allegation has heightened the urgency of the class action, exposing underlying issues within the company’s business model.
Impact on SelectQuote Stock
Following the announcement of these allegations, SelectQuote's stock saw a significant decline, dropping approximately 19.2% on May 1, 2025. Investors were understandably concerned about the implications for the company’s future and their investments.
Support for Affected Investors
Faruqi & Faruqi is actively encouraging anyone with information regarding SelectQuote, including whistleblowers or former employees, to come forward. This information is vital to strengthen the case against the company.
Conclusion
The situation with SelectQuote illustrates the complexities and risks involved in investing in publicly traded companies. As the class action progresses, it’s essential for investors to stay informed and consider their legal rights.
Frequently Asked Questions
What is the deadline for the class action lawsuit?
The lead plaintiff deadline for the SelectQuote class action lawsuit is October 10, 2025.
How can I participate in the class action?
Investors can participate by contacting Josh Wilson at Faruqi & Faruqi to discuss their options.
What allegations are made against SelectQuote?
SelectQuote is accused of misleading investors by making false statements regarding its business practices and regulatory compliance.
What impact did the DOJ's complaint have?
The DOJ's complaint has raised significant concerns regarding SelectQuote's operations and has led to a decline in its stock price.
Who can serve as a lead plaintiff?
The lead plaintiff is typically the investor with the largest financial stake in the case and who is representative of the class members.
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