What is the estimated financial exposure or potential settlement amount from this class action lawsuit?

Estimated Exposure / Potential Settlement

The filing itself does not disclose a concrete dollar figure, but the complaint cites “substantial losses” suffered by a broad class of shareholders and highlights that the alleged misstatements affected the company’s valuation over multiple quarters. In similar securities‑fraud actions against mid‑cap NYSE stocks, firms typically face exposure that ranges from tens of millions up to a low‑hundred‑million‑dollar settlement (often 0.5‑2 % of the company’s market cap). Given SelectQuote’s current market cap (roughly $2 bn as of Aug 2025) and the language used by the plaintiffs (“substantial losses”), a reasonable ball‑park estimate for the potential settlement is $80 million – $150 million.

Trading Implications

Until a concrete settlement number or court ruling emerges, the market will price in a risk premium for the lawsuit. Expect continued downside pressure on SLQT’s share price, especially if the stock is trading near recent lows (technical support around $15‑$16). Short‑term volatility may spike on any procedural updates (e.g., a motion to dismiss or a deadline for class certification). Traders could consider a short‑bias position (e.g., put spreads or a modest short) targeting the $14‑$15 range, while keeping a watchful eye on any settlement news that could trigger a rapid rebound. If a settlement figure is disclosed and falls at the lower end of the estimate, the risk premium could compress, offering a potential short‑cover rally. Conversely, a high‑end settlement estimate would likely keep downside pressure intact.