SelectQuote ($SLQT) Medicare Advantage Weakness, Rising Costs, and Misleading Growth Claims Case

The court has appointed the lead plaintiff to represent the class.

S.D. New York

Court

1:25-cv-06620

Case number

09/09/2020

Class period Start

05/01/2025

Class period End

10/10/2025

Lead Plaintiff motion deadline

$SLQT investors filed a claim against SelectQuote for overstating the strength of its Senior health insurance segment, misrepresenting customer retention rates, and concealing rising acquisition costs.
After disclosing worsening retention trends, higher costs, and slashing guidance, $SLQT dropped sharply across multiple trading sessions, including a 42% decline on May 9, 2023, and further losses following additional disappointing results.
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Case Details:

Between February 8, 2023, and August 10, 2025, SelectQuote repeatedly told investors that its Senior segment was growing profitably, driven by strong customer retention and stable acquisition costs. Executives portrayed the business as resilient, even in a challenging macroeconomic environment.

In reality, retention rates were deteriorating, marketing expenses were rising, and customer lifetime values were weakening — eroding profitability. These negative trends were not disclosed until a series of earnings reports and guidance cuts forced the truth into the open.

On May 9, 2023, SelectQuote revealed weaker-than-expected retention and raised cost concerns, causing a 42% plunge in share price. Additional declines followed in subsequent quarters as poor results persisted and the company cut guidance again.

Based on these events, $SLQT investors filed a claim against SelectQuote, alleging the company:

It misrepresented the performance and sustainability of its Senior segment.
It concealed deteriorating retention rates and rising acquisition costs.
It maintained inflated share prices with misleading statements about business stability.
Investors argue SelectQuote misled the market about its core business health to sustain its valuation until the truth became unavoidable.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Appointed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/08/2024

Filing date

08/11/2025

Lead Plaintiff Deadline

10/10/2025

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