PHILADELPHIA, Oct. 15, 2021 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against SelectQuote, Inc. (“SelectQuote” or the “Company”) on behalf of investors who purchased or acquired shares of the Company’s securities between May 20, 2020 and August 25, 2021 (the “Class Period”).
According to the complaint, during the Class Period SelectQuote “repeatedly reported inflated revenues, earnings, and accounts receivable, as well as the revenue per policy and lifetime value per policy.” The complaint further alleges that, as a result of such misrepresentations, SelectQuote’s shares traded at artificially inflated prices throughout the Class Period.
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 these disclosures, SelectQuote’s share price declined $5.50 per share, or 20% in value.
Then, on August 25, 2021, SelectQuote disclosed that 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 these disclosures, SelectQuote’s share price 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 May 11, 2021 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by email at email@example.com, to discuss this investigation and their legal rights and options. Additional information may also be found at https://kaskelalaw.com/cases/selectquote-inc/.
Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.