SelectQuote, Inc.

  • Active

Investigation
08/16/2021

Initial Lawsuit
08/16/2021

Lawsuit Progression
10/15/2021

Investigation

  • Continous Holding
    February 8, 2021 to May 11, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding SelectQuote statements about the performance of its 2019 cohort and subsequent financial results.

Main Event

Negative Cohort

05/11/2021

Company Statement

SelectQuote reports its Q3 2021 financial results, adjusting its net income and adjusted EBITDA guidance. During the conference call, executives reportedly explained that SelecQuote’s yearly Prescription Drug Plan (PDP) cohort tail analysis revealed a “negative cohort and tail adjustment.” The adjustment followed the underperformance of 2019 cohorts.

“In terms of what’s driving that, I think, you know, before we sort of say that the introduction of a low key and the ability for seniors to change more frequently, now is probably impacting that. I think we have made some changes since then in terms of our technology and our process for a better drug and doctor matching and we’re seeing some of that play through into the more recent cohorts.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$21.9 $27.4 $-5.5 -20.07%
See more on Factual Timeline

Initial Lawsuit

This is a class action on behalf of persons and entities that purchased or otherwise acquired SelectQuote securities between February 8, 2021 and May 11, 2021, inclusive.

  • Filing Date
    08/16/2021
  • Class Period
    02/08/2021 to 05/11/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Glancy Prongay & Murray LLP
    The Law Offices of Frank R. Cruz
  • Case Title
    Hartel v. SelectQuote, Inc. et al
  • Docket Number
    1:21-cv-06903
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) thatSelectQuote’s 2019 cohort was underperforming; (2) that, as a result, the Company’s financialresults would be adversely impacted; and (3) that, as a result of the foregoing, Defendants’ positivestatements about the Company’s business, operations, and prospects were materially misleadingand/or lacked a reasonable basis.

Defendants

  • Company
    SelectQuote, Inc.
  • Chief Executive Officer
    Tim Danker
  • Chief Financial Officer
    Raffaele Sadun

Lawsuit progression

  • Docket Number
    1:21-cv-06903
  • Court
    New York Southern District Court

The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses.
Last event retrieved on 10/03/2022.

[stockdio-historical-chart symbol=”SLQT” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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