What is the estimated total liability exposure for SelectQuote based on the $100K+ losses claimed by shareholders?

Estimated liability exposure

The Rosen filing states that “stockholders with losses in excess of $100 K” are being asked to come forward. Because the complaint does not disclose how many investors fall into that bracket, we can only approximate the potential exposure by applying a reasonable lower‑bound scenario.

• If 10 shareholders each suffered the minimum $100 K loss, the company’s exposure would be $1 million.
• If the group is larger—say 30 shareholders (a typical size for a class‑action cohort in a mid‑cap stock)—the exposure rises to $3 million.
• Even a modest 50‑shareholder group would already push the liability to $5 million.

Given the language “in excess of $100 K,” the actual per‑shareholder losses are likely higher than the floor, so a realistic exposure range is $1 million – $10 million (or more) pending further disclosure of the exact number of claimants and the average loss size.

Trading implications

• Fundamentals: A multi‑million‑dollar contingent liability is material for a company whose market cap is roughly $1–$2 billion. If the exposure materialises, it could erode cash balances, tighten operating margins, and force the firm to set aside additional reserves.
• Technical outlook: The stock has already reacted negatively to the lawsuit announcement (‑70 sentiment), with the price breaking below recent support around the $30‑$32 range on the daily chart. The move suggests the market is pricing in a near‑term downside risk, but the price has found a new short‑term floor near $28‑$29, where volume has held steady.
• Actionable view: Until the firm discloses the exact number of claimants and the expected payout, the risk remains uncertain but non‑trivial. A prudent short‑to‑medium‑term stance would be to reduce exposure or tighten stop‑losses around the $28 level, while keeping a watch for any corporate update (e.g., a press release or SEC filing) that quantifies the liability. If the exposure is confirmed at the higher end of the range, the stock could face further pressure and may test the $25‑$26 support zone. Conversely, if the liability is limited to a few hundred‑thousand‑dollar claims, the downside may be capped, allowing a re‑entry near the $30‑$32 resistance on a bounce‑back.