SelectQuote Inc Faces Legal Challenges Amid DOJ Allegations

SelectQuote, Inc., a company operating in the Financials sector, has recently come under scrutiny due to allegations related to the False Claims Act. The company, which specializes in providing legal protection for life, properties, and automobiles, is based in Overland Park, United States, and primarily serves customers in Kansas. As of April 29, 2025, SelectQuote’s stock closed at $3.17, a significant drop from its 52-week high of $6.86 on February 10, 2025, and above its 52-week low of $1.76 on September 16, 2024. The company’s market capitalization stands at approximately $568.08 million, with a price-to-earnings ratio of -36.3.

On May 1, 2025, multiple news sources reported a decline in SelectQuote’s stock price following allegations of Medicare kickbacks and a False Claims Act complaint. According to reports from Benzinga, eHealth, GoHealth, and SelectQuote shares sank due to allegations from the U.S. Department of Justice (DOJ) concerning Medicare kickbacks. Concurrently, news from Investing.com and its regional counterparts in Canada and India highlighted a drop in SelectQuote’s stock amid a False Claims Act complaint.

The U.S. Justice Department filed a complaint against three major health insurance companies—Aetna Inc. (CVS.N), Elevance Health (ELV.N), and Humana (HUM.N)—under the False Claims Act. The complaint also implicates three large insurance broker organizations: eHealth, GoHealth, and SelectQuote. The DOJ alleges that from 2016 through at least 2021, these entities engaged in practices that violated the False Claims Act.

In addition to these legal challenges, a report from Seeking Alpha on April 29, 2025, raised concerns about the sustainability of SelectQuote’s business model. The report suggests that the company’s current operational strategies may not be sustainable in the long term, adding to the uncertainty surrounding its future prospects.

As SelectQuote navigates these legal and operational challenges, investors and stakeholders are closely monitoring the situation to assess its impact on the company’s financial health and market position.