NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Health Insurance Innovations, Inc. (“Health Insurance Innovations” or the “Company”) (NASDAQ:HIIQ) of the April 22, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Health Insurance Innovations stock or options between February 28, 2018 and November 27, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/HIIQ. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
The lawsuit has been filed in the U.S. District Court for the Middle District of Florida on behalf of all those who purchased Health Insurance Innovation securities between February 28, 2018 and November 27, 2018 (the “Class Period”). The case, Keippel v. Health Insurance Innovations, Inc. et al., No. 19-cv-00421 was filed on February 18, 2019, and has been assigned to Judge William F. Jung.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (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.
Specifically, on November 27, 2018, Aurelius Value published a report titled “HIIQ: Boiler Rooms, ‘Worthless’ Policies, and Defrauded Families,” which alleged, among other things, that more than half of the Company’s revenues were derived from Simple Health and its affiliates and that a “material portion” of the Company’s policies were likely “contaminated by insurance fraud.”
On this news, the Company's stock price fell from $33.13 per share on November 26, 2018 to $31.20 per share on November 27, 2018—a $1.93 or 5.83% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Health Insurance Innovation’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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