Pomerantz Law Firm Announces the Filing of a Class Action against Health Insurance Innovations, Inc. and Certain Officers – HIIQ
09/13/2017 | 09:38pm CET
NEW YORK, Sept. 13, 2017 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Health Insurance Innovations, Inc. (“Health Insurance Innovations” or the “Company”) (NASDAQ:HIIQ) 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.
If you are a shareholder who purchased Health Insurance Innovations securities between August 2, 2017, and September 11, 2017, both dates inclusive, you have until November 10, 2017, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com