Pomerantz LLP announces that a class action lawsuit has been filed against Health Insurance Innovations, Inc. ("Health Insurance Innovations" or the "Company") and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-06962, is on behalf of a class consisting of investors who purchased or otherwise acquired Health Insurance Innovations securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
Health Insurance Innovations operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the United States. The Company offers, inter alia, short-term medical plans, hospital indemnity plans, and supplemental insurance products. It designs and structures individual health and family insurance plans, and supplemental products on behalf of insurance carriers and discount benefit providers and market them to individuals through a network of distributors.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Health Insurance Innovations' application for a key insurance license in its home state of Florida was rejected due to the state's Office of Insurance Regulation's ("OIR") discovery of undisclosed legal actions against Health Insurance Innovations insiders; (ii) Health Insurance Innovations warned the OIR of the anticipated "domino effect" that the rejection was likely to cause, by which the Company would subsequently lose licenses in additional states; and (iii) as a result of the foregoing, Health Insurance Innovations' public statements were materially false and misleading at all relevant times.
On September 11, 2017, the website SeekingAlpha.com published an article reporting on the OIR's June 2017 rejection of Health Insurance Innovations' application for a "key insurance license in [its] home state of Florida as [the OIR] uncovers undisclosed legal actions against HIIQ insiders" and that "HIIQ privately warns of disastrous "domino effect" spreading to other states, causing additional loss of licenses. HIIQ makes no disclosure to investors."
On this news, Health Insurance Innovations' share price fell $6.55, or 21.91%, to close at $23.35 on September 11, 2017.