SelectQuote Faces DOJ Kickback Lawsuit
Analysis based on 7 articles · First reported Aug 20, 2025 · Last updated Oct 06, 2025
The lawsuit and government complaint against SelectQuote have led to a significant drop in its stock price, indicating negative market sentiment for the company. This event highlights regulatory risks in the insurance brokerage industry, potentially leading to increased scrutiny for other companies in the sector.
SelectQuote is facing a federal securities class action lawsuit and a False Claims Act complaint filed by the United States — United States Department of Justice. The complaints allege that SelectQuote engaged in illegal practices from 2016 to at least 2021, including receiving tens of millions of dollars in illegal kickbacks from health insurance companies. SelectQuote is accused of steering Medicare beneficiaries to plans that offered the best compensation to the company, rather than providing unbiased comparisons or suitable plans. Furthermore, SelectQuote allegedly conspired with major insurers to discriminate against less profitable beneficiaries, such as those with disabilities. These allegations led to a 19.2% drop in SelectQuote's stock price on May 1, 2025. Faruqi & Faruqi is investigating these claims and encouraging investors who suffered losses to join the class action lawsuit, with a deadline of October 10, 2025, to seek the role of lead plaintiff.
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