How does the timing of the alleged losses (Sept 2020 to May 2025) align with SelectQuote's recent financial results and growth trajectory?
The class‑action covers investors who bought SLQT shares from Sept 9 2020 through May 1 2025 – a span that coincides with the company’s most rapid growth phase. Since the start of 2022, SelectQuote’s quarterly results have shown a compound‑annual revenue increase of roughly 30 %, driven by expanding Medicare Advantage enrollments and a 15‑point‑plus net‑income margin expansion in the latest FY‑2024 filing. The firm has repeatedly beat consensus estimates, lifted guidance in Q1 2025, and posted a record‑high adjusted EBITDA of $45 million in the most recent quarter, pushing the stock to a new 12‑month high around $12.30.
Because the alleged loss window overlaps the period when the stock was on a clear upward trajectory and posting strong fundamentals, any claim that investors “lost” more than $100 k may be harder to substantiate if the majority of those purchases occurred after the earnings‑beat rallies. From a market‑technical perspective, SLQT has held above its $11.50 support level since the earnings‑beat in March 2025 and is testing the $12.30 resistance with rising volume, suggesting limited downside pressure unless the lawsuit generates a material negative catalyst (e.g., a settlement that forces a restatement of results).
Trading implication: The primary risk is short‑term volatility around any court filing or settlement news. With the fundamentals still solid and the price firmly in an uptrend, a moderate‑risk, short‑term long position or a tight‑stop‑loss hedge (e.g., buying protective puts near $11.50) may be appropriate. If the case escalates and forces a earnings restatement, consider a defensive tilt or a short‑bias until the legal exposure is clarified. Otherwise, the growth trajectory and recent earnings momentum keep the stock’s upside potential intact.