SelectQuote has faced legal scrutiny and regulatory challenges, including a prominent federal False Claims Act complaint filed by the U.S. Department of Justice alongside subsequent private investor class-action lawsuits. These legal actions allege that the company engaged in systematic practices of directing Medicare beneficiaries toward insurance policies that paid the highest kickbacks and commissions rather than focusing on consumer suitability. Additional privacy litigation has centered on website tracking pixel data disclosures, leading to significant stock price volatility and heightened regulatory oversight.