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MediaAlpha, Inc. (NYSE:MAX) ("MediaAlpha" or the "Company") today announced that it has reached a settlement with the Federal Trade Commission ("FTC") to fully resolve matters related to the previously disclosed FTC investigation focused primarily on the Company's under-65 health insurance sub-vertical.
Under the terms of the settlement, which is subject to court approval, MediaAlpha will pay $45 million and agree to certain other provisions, including additional disclosures and content review processes relating to its under-65 health websites and additional measures to screen and monitor its under-65 health partners. The settlement is not expected to have a material impact on MediaAlpha's core Property & Casualty insurance vertical, Medicare sub-vertical or other business operations.
The Company issued the following statement:
We are pleased to put this matter behind us. While we strongly disagree with the FTC's allegations, we believe that settling this matter is in the best interests of MediaAlpha and our shareholders. MediaAlpha has always been committed to transparency and compliance, and we share the FTC's goal of preventing the misuse of our under-65 health marketplaces by third parties. As part of this settlement, we have agreed to further enhance our industry-leading compliance processes in under-65 health.
We remain very excited about the multi-year growth prospects for our core Property & Casualty and Medicare verticals, driven by strong secular tailwinds, the efficiency of our marketplace model, and our continued focus on innovation. We expect these factors to continue to produce strong, sustainable and profitable growth for MediaAlpha for years to come.
The $45 million payment is equal to $0.61 per fully diluted share. MediaAlpha intends to fund this payment with existing cash on hand, which was $85.4 million as of June 30, 2025. Pursuant to the settlement, the Company will pay $33.5 million within seven days of court approval of the settlement and $11.5 million within 90 days of court approval. Such payments will not impact the Company's ability to operate its business in the normal course, and the Company will remain in full compliance with the terms of its credit agreement following the settlement.
Additional information related to the FTC settlement is available in a Form 8-K filed today with the U.S. Securities and Exchange Commission.
Posted In: MAX
