Pahlkotter v. SelectQuote

Background

Robert Pahlkotter brought a proposed class action on behalf of investors who purchased SelectQuote, Inc. securities between September 9, 2020, and May 1, 2025. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5, based on alleged material misstatements and omissions concerning SelectQuote’s business.

The motion addressed only who should represent the proposed class and which law firm should serve as lead counsel. Under the Private Securities Litigation Reform Act of 1995, or PSLRA, the court must appoint the proposed class member most capable of adequately representing the class. The court generally considers the applicant’s financial interest and whether the applicant’s claims are typical of the class’s claims and whether the applicant and counsel can adequately represent the class.

Lead Plaintiff

Pahlkotter stated that he suffered approximately $37,635 in financial losses. No competing plaintiff filed a motion, and no opposition was filed. The court therefore treated Pahlkotter’s financial interest as sufficient for purposes of the motion, subject to its review of the requirements for class representation.

The court found a preliminary showing of typicality because Pahlkotter, like the proposed class members, alleged that the defendants’ misstatements and omissions violated federal securities laws and that he purchased SelectQuote securities in reliance on those statements and suffered damage. The court also found a preliminary showing of adequacy because Pahlkotter had selected experienced counsel, had a sufficient financial interest in the case, and had no identified conflict of interest or unique defense that would prevent him from representing the class.

The court concluded that Pahlkotter was presumptively the plaintiff most capable of adequately representing the class. That presumption was not rebutted by any competing proof.

Lead Counsel

The PSLRA permits the most adequate plaintiff to select counsel, subject to court approval. Pahlkotter selected Glancy Prongay & Murray LLP. The court found that the firm had sufficient experience in complex securities litigation and had participated in numerous securities-fraud class actions. The appointment was unopposed.

Disposition

The court appointed Robert Pahlkotter as Lead Plaintiff and approved his selection of Glancy Prongay & Murray LLP as Lead Counsel for the class. The court granted Pahlkotter’s motion, directed the Clerk to terminate Docket 14, and adjourned the scheduled November 5, 2025 hearing. The opinion did not decide the merits of the alleged securities-law claims.