MediaAlpha, Inc. INVESTIGATION: Kirby McInerney LLP Announces Investigation Into Potential Securities Fraud on behalf of Investors (MAX)

By: Kirby McInerney LLP via GlobeNewswire

September 19, 2025 at 18:08 PM EDT

NEW YORK, Sept. 19, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against MediaAlpha, Inc. (“MediaAlpha” or the “Company”) (NYSE: MAX). The investigation concerns whether the Company may have violated federal securities laws or engaged in other unlawful business practices.

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What Happened?

On June 24, 2024, Wolfpack Research published a report entitled “MAX: Our Investigation Reveals MAX Is Participating in Consumer Fraud.” In pertinent part, Wolfpack announced that it was “short the insurance lead generator, MediaAlpha, Inc. (NYSE: MAX) following our research into the company’s [Health Insurance] segment[.]” Wolfpack stated that it believed “[MediaAlpha] uses dishonest and sometimes outright fraudulent ads along with deceptive websites to trick consumers into providing their personal information in exchange for a health insurance ‘quote.’ [MediaAlpha] then sells this information as raw lead data or uses it to generate clicks or calls for its lead-buying partners. Our investigation indicates as much as 78% of [MediaAlpha’s] Health [Insurance] lead-buying partners are running boiler room health insurance scams or are flagrantly violating laws concerning telemarketing.” On this news, the price of MediaAlpha shares declined by $1.05 per share, or approximately 6.85%, from $15.34 per share on June 24, 2024 to close at $14.29 on June 25, 2024.

Then, on November 4, 2024, MediaAlpha disclosed receipt of a letter from the Federal Trade Commission (“FTC”) staff stating that the FTC staff was “prepared to recommend the filing of a complaint against the Company,” claiming that MediaAlpha falsely “represented itself as affiliated with government entities, made misleading claims (in particular regarding health insurance products and use of consumers’ personal information) and utilized deceptive advertising.” On this news, the price of MediaAlpha shares declined by $4.46 per share, or approximately 27.73%, from $16.08 per share on November 4, 2024 to close at $11.62 on November 5, 2024.

Then, on August 6, 2025, MediaAlpha announced it was settling claims with the FTC for $45 million. According to the FTC’s complaint, MediaAlpha would use advertisements and websites claiming to provide health insurance quotes to collect information from consumers looking for insurance, while in reality, MediaAlpha sold nothing to consumers, and the consumer information it collected would be sold to telemarketers. According to the FTC, MediaAlpha sold approximately 119 million leads about consumers in 2024 alone.

What to Do Next?

If you acquired MediaAlpha securities, have information, or would like to learn more about this investigation, contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out the form below to discuss your rights or interests with respect to these matters without any cost to you.

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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars.

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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
investigations@kmllp.com