SelectQuote, Inc. (SLQT) Failed to Disclose Underperformance of its PDP Products
A class action was filed on behalf of all persons and entities that purchased or otherwise acquired SelectQuote, Inc. (NYSE: SLQT) securities between February 8, 2021 and May 11, 2021, for violations of the Securities Exchange Act of 1934. SelectQuote is a direct-to-consumer distribution platform that offers complex senior health, life, and auto & home insurance policies from a panel of insurance carriers.
According to the complaint, during the relevant period, SelectQuote failed to disclose to investors that its 2019 cohort was underperforming. On May 11, 2021, SlectQuote disclosed that its fourth quarter financial results would be impacted by a “negative cohort and tail adjustment” due to “lower second-term persistency for the 2019 cohort.” On this news, the Company’s share price fell $5.50, or 20%, to close at $21.90 per share on May 12, 2021. Shares of SelectQuote fell again on August 27, 2021, after the Company’s earning announcement, which revealed new profit pressures and a cautious outlook for fiscal 2022. Today, the stock trades under $14.00.
If you purchased shares of SelectQuote, Inc. (SLQT) securities between February 8, 2021 and May 11, 2021, you have until October 15, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.