RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Health Insurance Innovations, Inc. (“HIIQ” or the “Company”) (NASDAQ: HIIQ) between February 28, 2018 and November 27, 2018, inclusive (the “Class Period”).
HIIQ shareholders may, no later than April 19, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of HIIQ and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the class period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that defendants failed to disclose to investors: (1) that a substantial portion of the company’s revenues were derived from third parties; (2) that these third parties used deceptive tactics to sell the company’s policies, including overstating the policy’s coverage and/or selling under the licenses of employees who had no involvement in the underlying sales; (3) that regulatory scrutiny of these third parties would materially impact the company’s operations; and (4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 2, 2018, HIIQ announced that it had immediately suspended its relationship with Health Benefits One LLC (“HBO”), an entity which the Federal Trade Commission (“FTC”) alleged had misleadingly sold HII policies, among others, as “comprehensive health insurance.” HIIQ additionally stated that, for the 2018 fiscal year to date, HBO “was the agency of record for less than 10% of HIIQ’s submitted policies.”
On this news, HIIQ’s stock price fell $4.47 per share, more than 8%, to close at $46.27 per share on November 2, 2018. HIIQ’s stock price continued to decline over the next trading session to close at $39.62 per share on November 5, 2018.
Then, on November 27, 2018, Aurelius Value published a report entitled “HIIQ: Boiler Rooms, ‘Worthless’ Policies, and Defrauded Families,” alleging, among other things, that more than half of the Company’s revenues were derived from boiler room operations that had recently been shut down by the FTC and that a “material portion” of the Company’s policies were likely “contaminated by insurance fraud.” Following this news, HIIQ’s stock price fell $1.93, or nearly 6%, to close at $31.20 per share on November 27, 2018.
If you are a member of the class, you may, no later than April 19, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.