Kaskela Law LLC is investigating SelectQuote, Inc. (“SelectQuote” or the “Company”) (NYSE: SLQT) on behalf of the Company’s stockholders.
Recently a securities fraud complaint was filed against SelectQuote on behalf of certain investors who purchased shares of the Company’s common stock between May 20, 2020 and August 25, 2021. According to the complaint, during that time period SelectQuote allegedly “repeatedly reported inflated revenues, earnings, and accounts receivable, as well as the revenue per policy and lifetime value per policy.”
On May 11, 2021, SelectQuote disclosed that its fourth quarter 2020 results would be impacted by a “negative cohort and tail adjustment” due to “lower second-term persistency for the 2019 cohort,” which SelectQuote attributed to the Medicare Advantage Open Enrollment Period (“OEP”) and increased “switching activity.” Following this news, shares of SelectQuote’s stock declined $5.50 per share, or 20% in value.
Then, on August 25, 2021, SelectQuote disclosed that a lack of policy renewals affected both the 2019 and 2020 cohorts, and that the Company was including a $65 million placeholder for the risk of an additional cohort tail adjustment the following year, driven mostly by lower-than-anticipated persistency results in the 2020 cohort. Following this additional news, shares of SelectQuote stock declined by an additional $6.46 per share, or 45% in value.
The investigation seeks to determine whether the members of SelectQuote’s board of directors breached their fiduciary duties to the Company and its stockholders in connection with the above alleged misconduct.
Current SelectQuote stockholders who purchased or acquired shares of the Company’s common stock prior to January 1, 2021 are encouraged to contact Kaskela Law LLC (David Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about this investigation and their legal rights and options.