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SLQT ALERT - Nationally Ranked Shareholder Rights Firm Labaton Sucharow is Investigating SelectQuote, Inc. (NYSE:SLQT) for Potential Securities Violations and Breach of Fiduciary Duty
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Very Negative)
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Rhea-AI Summary
Labaton Sucharow is investigating potential securities violations involving SelectQuote, Inc. (NYSE:SLQT) after the company disclosed its fourth-quarter results would be negatively affected by a 'negative cohort and tail adjustment' related to the 2019 cohort's lower second-term persistency.
This revelation led to a 20% drop in SelectQuote's share price, closing at $21.90 on May 12, 2021. Allegations include that the company made materially misleading statements regarding its financial performance during the Class Period from February 8 to May 11, 2021.
Positive
None.
Negative
Share price declined by 20% to $21.90 following the negative disclosure.
Allegations of misleading statements regarding the 2019 cohort's performance.
NEW YORK--(BUSINESS WIRE)--
Labaton Sucharow, a nationally ranked and award-winning shareholder rights firm, is investigating potential securities violations and breach of fiduciary duty claims against SelectQuote, Inc. (NYSE:SLQT).
On May 11, 2021, SelectQuote held a conference call in connection with its third quarter 2021 financial results during which it disclosed that its fourth quarter 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, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, 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 made material misrepresentations concerning the following: (1) that SelectQuote's 2019 cohort was underperforming; (2) that, as a result, the Company's financial results would be adversely impacted; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Investors who purchased or otherwise acquired SelectQuote, Inc. ('SelectQuote' or 'the Company') (NYSE:SLQT) securities between February 8, 2021 and May 11, 2021, inclusive (the 'Class Period') are hereby notified that they have until October 15, 2021 to move the Court to serve as lead plaintiff in this action.
If you currently own stock or options in SelectQuote, Inc. and want to receive additional information and protect your investments free of charge, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at david@labaton.com.
About the Firm
Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at Labaton.com.
What caused SelectQuote's share price to drop significantly on May 12, 2021?
SelectQuote's share price dropped by 20% due to a negative disclosure about its fourth-quarter results impacted by lower second-term persistency in the 2019 cohort.
What are the securities violations being investigated regarding SelectQuote (SLQT)?
Labaton Sucharow is investigating potential securities violations related to SelectQuote's misleading statements about its business performance during the Class Period from February 8 to May 11, 2021.
What is the deadline for investors to act in the SelectQuote class action?
Investors have until October 15, 2021, to move the Court to serve as lead plaintiff in the action against SelectQuote.
What impact did SelectQuote's fourth-quarter results announcement have?
The announcement led to a 20% decline in SelectQuote's stock price, indicating significant investor concern regarding future profitability.
