Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of SelectQuote, Inc. (NYSE: SLQT), if they purchased the Company’s shares between May 20, 2020 and August 25, 2021, inclusive (the “Class Period”) and/or pursuant to the Company’s May 2020 initial public offering.
SelectQuote and certain of its executives are charged with failing to disclose material information during the Class Period and/or in the Registration Statement and Prospectus issued in conjunction with the initial public offering, violating federal securities laws.
On May 11, 2021, the Company disclosed that its fourth quarter results would be impacted by a “negative cohort and tail adjustment” due to “lower second-term persistency [renewal rates] for the 2019 cohort,” which it attributed to increased “switching activity” in the Open Enrollment Period. 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.
Then, on August 25, 2021, the Company disclosed that lower than anticipated policy renewal rates 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.
On this news, the Company’s share price plummeted an additional $6.46 per share, or 45%.
Shareholders have until October 15, 2021 to request that the court appoint them lead plaintiff.