SelectQuote (SLQT) Faces Investor Scrutiny After DOJ Alleges False Claims Act Violations

Associated Press

07-05-2025

SAN FRANCISCO, May 07, 2025 (GLOBE NEWSWIRE) -- On May 1, 2025, investors in SelectQuote (NYSE: SLQT) saw the price of their shares tumble over 19% after the U.S. Department of Justice announced it had filed a lawsuit against the company, other insurance brokers, and three of the nation's largest health insurance companies, claiming violations of the False Claims Act.
Hagens Berman urges SelectQuote investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
SelectQuote (SLQT) Investigation:
The investigation is focused on the propriety of SelectQuote's disclosures concerning its sales and other business practices, particularly with respect to its Senior business which offers Medicare Advantage ('MA') plans written by health insurance companies such as Aetna, Anthem, and Humana ('insurers').
In the past, SelectQuote has claimed '[o]ur agents are trained to offer unbiased advice in order to be more aligned to the specific needs of each customer' and Senior 'provides unbiased comparison shopping for Medicare Advantage ('MA') and Medicare Supplement ('MS') insurance plans[.]'
SelectQuote's claims came into question on May 1, 2025, when the DOJ filed a complaint alleging that from 2016 through at least 2021 the insurers:
Paid hundreds of millions of dollars to SelectQuote and other brokers in exchange for enrollments into the insurers' Medicare Advantage plans;
Rather than acting as unbiased stewards, SelectQuote and other brokers directed Medicare beneficiaries to the plans offered by insurers that paid brokers the most in kickbacks, regardless of the suitability of the MA plans for the beneficiaries;
SelectQuote and other brokers incentivized their employees and agents to sell plans based on the insurers' kickbacks, set up teams of insurance agents who could sell only those plans, and at times refused to sell MA plans of insurers who did not pay sufficient kickbacks; and
SelectQuote and other brokers conspired to discriminate against MA beneficiaries with disabilities.
This news sent SelectQuote shares spiraling 19% lower on May 1, 2025.
'We're concerned about SelectQuote's alleged steering practices and the extent to which the practices, if true, may have inflated the company's financial results,' said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in SelectQuote and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the SelectQuote investigation, read more»
Whistleblowers: Persons with non-public information regarding SelectQuote should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895