SAN DIEGO & TAMPA, Fla.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Health Insurance Innovations, Inc. (NasdaqGM: HIIQ) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between November 3, 2016 and September 11, 2017. HIIQ is a distributor and administrator of cloud-based individual and family health insurance plans and supplemental products in the United States.
View this information on the law firm's Shareholder Rights Blog:
Health Insurance Innovations Accused of Omitting Information About Insurance License Application Denial
According to the complaint, HIIQ is under investigation by 42 states for alleged fraudulent business practices, including intentionally misrepresenting the terms of an insurance contract and using dishonest practices to sell short-term health care plans. HIIQ submitted its Florida third-party administrator application on July 18, 2016, which was eventually denied on June 1, 2017, because the state's Office of Insurance Regulation ("OIR") discovered undisclosed legal actions against HIIQ insiders. Shareholders were oblivious to these highly material negative facts because HIIQ intentionally kept them under wraps. Meanwhile, certain company insiders sold their HIIQ stock at suspicious times and at inflated prices. Then, on September 11, 2017, SeekingAlpha.com published a whistleblower report that publicly disclosed for the first time that HIIQ had privately warned the OIR that it was in danger of losing additional licenses. On this news, HIIQ's stock fell nearly 34% to close at $19.75 per share on September 12, 2017.
Health Insurance Innovations Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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