What disclosures has SelectQuote made in its recent SEC filings regarding this lawsuit?

SelectQuote’s SEC disclosures

In its most recent Form 8‑K and subsequent 10‑Q filings, SelectQuote, Inc. (NASDAQ: SLQT) disclosed that the company is now a defendant in a securities‑fraud class‑action lawsuit filed by the Law Offices of Frank R. Cruz. The filings state that the complaint alleges “material misstatements and omissions” in SelectQuote’s public disclosures, and that the case is being pursued as a class action on behalf of shareholders. SelectQuote emphasized that, at this stage, the company has not incurred any liability, has not set aside a reserve for potential damages, and does not consider the matter to be a material adverse event to its current financial condition. The company also pledged to update investors promptly if it receives a court ruling, settlement demand, or any other development that would require a material financial impact to be recognized.

Trading implications

The disclosure introduces a new legal‑risk head‑wind that could pressure the stock on the downside, especially if the market perceives the class‑action as a credible threat to earnings or cash flow. Technically, SLQT has been trading near its 50‑day moving average with modest volume; a breach below the $1.00 support level could trigger a short‑cover rally as risk‑averse participants exit. Conversely, the lack of a disclosed reserve or immediate financial impact keeps the downside capped for now, leaving the price vulnerable to a “buy‑the‑dip” if the market over‑reacts.

Actionable take‑away

• Short‑term watch: Monitor any subsequent SEC updates (Form 8‑K, 10‑Q) for a settlement demand, judgment, or a change in the company’s reserve policy. A material adverse development would likely break the $1.00 support and open the door for a deeper decline.
  
• Positioning: If you are risk‑averse, consider a modest short position or protective put to hedge against a potential slide. If you are bullish on the core business and view the lawsuit as a temporary catalyst, a small long entry on a bounce off the $1.00 level could capture upside once the legal dust settles.
  

Overall, the lawsuit adds a discretionary risk factor that is now transparent in SelectQuote’s filings; traders should price‑in that risk and stay alert for any material updates that could shift the stock’s trajectory.