SelectQuote, Inc. (SLQT) Securities Fraud Class Action:
SelectQuote is a direct-to-consumer distribution platform that offers complex senior health, life, and auto & home insurance policies from a curated panel of insurance carriers. A significant majority of the policies SelectQuote sells are Medicare Advantage and Medicare Supplement policies, which are grouped by their effective date into yearly cohorts.
The action alleges that, throughout the Class Period, Defendants made false and misleading statements regarding the rapid policy disenrollment it had been experiencing, and as a result the Company’s reported revenues, earnings, accounts receivable, and lifetime value of commissions per approved policy were improperly inflated.
The truth emerged through a series of partial disclosures beginning on May 11, 2021, when SelectQuote disclosed its Q4 2020 financial reports would be impacted by a negative cohort and tail adjustments, which management attributed to the Medicare Advantage Open Enrollment Period (“OEP”) and increased “switching activity.”
Then, on Aug. 25, 2021, SelectQuote revealed that lack of policy renewals affected both the 2019 and 2020 cohorts, and it would include a $65 million placeholder for the risk of additional cohort tail adjustment for the following year.
These events sent the price of SelectQuote shares crashing lower.
If you invested in SelectQuote and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
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].
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP