Health Insurance Innovations, Inc.
Robbins Arroyo LLP: Health Insurance Innovations, Inc. (HIIQ) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Health Insurance Innovations, Inc. (NasdaqGM: HIIQ). The complaint is brought on behalf of all purchasers of HIIQ securities between August 2, 2017 and September 11, 2017, for alleged violations of the Securities Exchange Act of 1934 by HIIQ’s officers and directors. HIIQ operates as a developer, distributor, and administrator of cloud-based individual health and family insurance plans, and supplemental products in the United States.
Health Insurance Innovations Accused of Hiding Legal Actions in Insurance License Application
According to the complaint, HIIQ reported positive second quarter 2017 financial and operating results, including exceptional top line growth and bottom line results, and predicted encouraging guidance for the full year 2017. HIIQ, however, allegedly failed to inform investors that the company’s application for a key insurance license in Florida was rejected due to the state’s Office of Insurance Regulation’s (“OIR”) discovery of undisclosed legal actions against HIIQ insiders. HIIQ further warned the OIR of the potentially disastrous “domino effect” that the rejection would likely cause, in turn leading the company to lose licenses in additional states. On September 11, 2017, SeekingAlpha.com published an article revealing the OIR’s rejection of HIIQ’s license application. On this news, HIIQ’s stock fell $6.55 per share, or nearly 22%, to close at $23.35 per share on September 11, 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 or you can complete the form below and we will contact you directly.