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Health Insurance Innovations, Inc.

24 days left to seek lead plaintiff status

Case Summary

Company Name
Health Insurance Innovations, Inc.
Stock Symbol
HIIQ
Class Period
February 28, 2018 to November 27, 2018
Motion Deadline
April 20, 2019
Court
Middle District of Florida

The complaint charges Health Insurance Innovations (“HIIQ”) and certain of its officers with violations of the Securities Exchange Act of 1934.  HIIQ distributes individual and family health insurance plans, including short-term medical insurance plans and guaranteed-issue and underwritten health benefit insurance plans.

The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business and operations.  Specifically, defendants failed to disclose that a substantial portion of the Company’s revenues were derived from third parties who used deceptive tactics to sell the Company’s policies, including overstating the policies’ coverage and/or selling under the licenses of employees who had no involvement in the underlying sales, and that regulatory scrutiny of these third parties would materially impact the Company’s operations.  As a result of this information being withheld from the market, HIIQ securities traded at artificially inflated prices during the Class Period, with the price of HIIQ stock reaching a high of more than $60 per share.

Then on November 27, 2018, Aurelius Value published a report stating, among other things, that “[p]reviously sealed documents gathered by the FTC directly undermine management’s claims and prove that a large boiler room operation recently shuttered by the government for a massive alleged fraud was responsible for roughly half of HIIQ’s sales. Evidence also suggests that HIIQ policies have been contaminated by insurance fraud and reveal that other HIIQ brokers prey on consumers with falsehoods.”  On this news, the price of HIIQ shares fell $1.93 per share, or nearly 6%, to close at $31.20 per share on November 27, 2018.

Class Period: February 28, 2018 - November 27, 2018
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