MediaAlpha Investigation Overview
Bleichmar Fonti & Auld LLP announces an investigation into MediaAlpha, Inc.’s (NYSE: MAX) board of directors and senior management for potential breaches of their fiduciary duties to shareholders in connection with alleged misleading claims and deceptive advertising that resulted in a $45 million settlement with the FTC.
If you are a current MediaAlpha shareholder, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why is MediaAlpha being Investigated?
On October 30, 2024, the FTC informed MediaAlpha the FTC was preparing to file a complaint against MediaAlpha “for violations of Section 5(a) of the FTC Act,” the “Telemarketing Sales Rule” and the “Government and Business Impersonation Rule.”
Underlying those claims, the FTC was preparing to allege that MediaAlpha “has represented itself as affiliated with government entities, made misleading claims (in particular regarding health insurance products and the Company’s use of consumers’ personal information) and utilized deceptive advertising” as part of its lead generation and telemarketing business. In November, 2024, MediaAlpha disclosed these (and other) high-level details of the lawsuit to its stockholders, and stated that it “believes that a loss in connection with the FTC matter is probable.”
In July of 2025, MediaAlpha settled the claims with the FTC. Under the terms of the settlement, MediaAlpha agreed to pay $45 million in cash and agreed to make various governance reforms restricting its future advertising and marketing practices. In August of 2025, the FTC issued its final approval of the settlement, and publicly posted its complaint against MediaAlpha (the “Complaint”).
The Complaint revealed significantly more detail about the nature of the FTC’s claims against MediaAlpha, including egregious details about MediaAlpha’s alleged unlawful conduct, including:
- MediaAlpha and its business partners had run “dozens of deceptive lead generation websites” which “falsely led consumers to believe that they are affiliated with state or federal government programs and that they offer special access to low-cost, comprehensive insurance plans”;
- MediaAlpha and its business partners had “lur[ed] in customers desperate for health insurance coverage with false promises of coverage for as little as $1 per day” while “bombarding them with so many telephone calls that one customer complained: ‘I can’t even use my phone to call my family or for emergency because your robo callers and telemarketers are calling me non-stop’”;
- During the scheme, MediaAlpha and its business partners “actually [sold] consumers nothing. Instead, after harvesting consumers’ personal and contact information, [they] auction it off to telemarketers and other lead generators”
The FTC Complaint further noted that MediaAlpha’s business partners had already been subject to prior law enforcement actions for the lead generation and telemarking practices, including two cases which resulted in a $195 million judgment and a $100 million judgement in favor of the FTC.
During the pendency of the FTC’s Complaint, MediaAlpha’s insiders sold large amounts of their shares in MediaAlpha, which raises questions about whether certain members of MediaAlpha’s management were taking advantage of their knowledge about the details of the Complaint before the full Complaint was disclosed to the rest of MediaAlpha’s stockholders.
BFA is investigating whether MediaAlpha’s board of directors, together with members of the company’s senior management, have breached their fiduciary duties to MediaAlpha stockholders in connection with the FTC’s investigation and certain MediaAlpha insiders’ sales of their stock.
How Do I Submit My Information?
If you are a current holder of MediaAlpha stock, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
adam@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of any class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
BFA’s notable successes include a recovery of over $900 million in value from Tesla Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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