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. (NASDAQ: HIIQ) (“Health Insurance Innovations” or the “Company”) securities between August 2, 2017 and September 11, 2017, inclusive (the “Class Period”).
Health Insurance Innovations shareholders may, no later than November 10, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Health Insurance Innovations 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.
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.
If you are a member of the class, you may, no later than November 10, 2017, 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.