Bronstein, Gewirtz Grossman LLC Files Class Action Lawsuit Against SelectQuote for Alleged Securities Violations

What's Happening?

Bronstein, Gewirtz & Grossman LLC, a law firm known for handling securities fraud cases, has announced a class action lawsuit against SelectQuote, Inc. The lawsuit alleges that SelectQuote and certain officers made false and misleading statements about the company's operations and failed to disclose adverse facts. These include claims that SelectQuote directed Medicare beneficiaries to plans that provided the company with the best compensation, rather than the most suitable options for the beneficiaries. Additionally, the lawsuit accuses SelectQuote of receiving illegal kickbacks and not complying with relevant laws, which could expose the company to regulatory and legal sanctions. The lawsuit covers individuals and entities that acquired SelectQuote securities between September 9, 2020, and May 1, 2025. Following the news, SelectQuote's stock price dropped significantly.

Why It's Important?

This lawsuit is significant as it highlights potential misconduct in the insurance brokerage industry, particularly concerning Medicare Advantage plans. If the allegations are proven, it could lead to substantial financial penalties for SelectQuote and impact its reputation and business operations. Investors who suffered losses due to the alleged misconduct may recover damages, which could influence investor confidence in the company. The case also underscores the importance of transparency and compliance with federal securities laws in maintaining investor trust and avoiding legal repercussions.

What's Next?

Investors who wish to participate in the class action have until October 10, 2025, to request the court to appoint them as lead plaintiffs. The outcome of this lawsuit could set a precedent for similar cases in the insurance industry, potentially leading to stricter regulatory scrutiny and changes in business practices. Stakeholders, including investors and regulatory bodies, will be closely monitoring the developments of this case.