Invested in
SelectQuote?
Attention SelectQuote shareholders: contact investor rights lawyers for a free evaluation of your potential claims for compensation today.
- Did you acquire shares of SelectQuote, Inc. (NYSE: SLQT) in or before May 2020 and do you still hold your SelectQuote shares?
- Are you concerned about the performance of the SLQT stock since it became publicly listed?
- Are you concerned about the conduct of SelectQuote’s officers and directors related to SelectQuote’s alleged failure to timely make material disclosures about its operations and financials to its shareholders?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Investments
Free Case Evaluation
The SelectQuote Class Action Investigation page is the resource for long-term shareholders of SelectQuote who would like to evaluate potential compensation claims.
- Free Case Evaluation
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Posted September 29, 2023
SelectQuote Class Action Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating potential securities violations and corporate misconduct, as well as questionable business practices involving SelectQuote and have identified potential areas of concern for SLQT investors.
What SelectQuote Investors May Do
SLQT investors interested in an evaluation of their potential options to seek compensation and/or pursue claims related to their SelectQuote investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in SelectQuote, Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned SLQT stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has SelectQuote Been Accused of Misconduct?
SelectQuote and its certain of its directors and officers have been the subject of a class action lawsuit, filed in the United States District Court for the Eastern District of New York in August 2021.
SelectQuote and its control persons who are defendants in that case were accused in that class action lawsuit of, among others, violating securities laws by allegedly making materially false and/or misleading statements and failing to disclose materially adverse facts that allegedly caused SelectQuote’s stock to trade at artificially inflated prices. According to the amended complaint, SelectQuote and certain of its executives allegedly misrepresented the company’s financial performance by allegedly overstating expected insurance policy renewals while repeatedly assuring investors of effectiveness of SelectQuote’s internal controls over financial reporting.
Were There Problems with SelectQuote’s Financial Reporting?
SelectQuote, through certain of its control persons, allegedly reported inflated financial metrics. Specifically, according to the amended class action complaint, prior to its May 2020 Initial Public Offering (“IPO”), the company started to see lower than initially expected renewal rates (also known as persistency rates) for health insurance plans called Medicare Advantage Plans. Declining persistency rates allegedly led to lower than estimated renewal commissions earned by the company, the complaint further noted.
SelectQuote reportedly went public on May 21, 2020 and raised $333.1 million by selling 18 million shares of common stock in addition to certain selling stockholders selling an additional 10.5 million shares at $20.00 per share, according to the Prospectus.
According to the class action complaint, SelectQuote allegedly failed to make the necessary adjustments in its Offering and subsequent documents to account for the lowered persistency rates. Furthermore, the complaint alleges that SelectQuote concealed the misconduct by making false and misleading statements about the Company’s business, operations, and prospects.
What Happened to the SLQT Share Price?
SLQT investors reportedly first learned of the lower persistency rates during a May 21, 2021, earnings call hosted to discuss earnings for the third quarter of the Company’s 2021 Fiscal Year, according to the complaint. Following the news, the price per SLQT share allegedly dropped approximately 20%. The price reportedly declined further in August 2021, when SelectQuote allegedly disclosed that “[a]ctual persistency in 2019 and 2020 has trended below initial model.”
According to data from Google Finance, as of September 29, 2023, SQLT shares trade more than 95% lower than the IPO price, closing at $1.18 the previous day.
Potential Compensation Claims
Do SelectQuote Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and evaluating potential claims for compensation and/or other redress on behalf of SelectQuote long-term shareholders whose share value dropped following the alleged misrepresentations of SelectQuote’s financial performance. The Rosca Scarlato attorneys have decades of combined experience representing victims of corporate or financial misconduct.
If you are a SelectQuote investor who has held SLQT shares since May 2020 or earlier and are concerned about the drop in the value of your investment, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, SelectQuote investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The SelectQuote Class Action Investigation page is not affiliated with SelectQuote, Inc. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
