(HIIQ) Health Insurance Innovations, Inc. Bronstein, Gewirtz & Grossman, LLC Updates Class Action and Deadline: April 22, 2019
NEW YORK, NY / ACCESSWIRE / March 14, 2019 / Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit against Health Insurance Innovations, Inc. ("HIIQ" or the "Company") (HIIQ) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired HIIQ securities between February 28, 2018 and November 27, 2018, both dates inclusive (the "Class Period"). Investors are encouraged to learn more about this case by visiting the firm's site: www.bgandg.com/hiiq.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made materially false and misleading statementsand/or failed to disclose that: (1) a substantial portion of Health Insurance Innovations' revenue was derived from third parties; (2) these third parties used deceptive tactics to sell Health Insurance Innovations' policies, including overstating the policy's coverage and/or selling under the licenses of employees who had no involvement in the underlying sales; (3) regulatory scrutiny of these third parties would materially impact Health Insurance Innovations' operations; and (4) as a result of the foregoing, defendants' positive statements about Health Insurance Innovations' business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 2, 2018, HIIQ announced that it had immediately suspended its relationship with Health Benefits One LLC ("HBO"), an entity which the Federal Trade Commission ("FTC") alleged had misleadingly sold HII policies, among others, as "comprehensive health insurance." HIIQ additionally stated that, for the 2018 fiscal year to date, HBO "was the agency of record for less than 10% of HIIQ's submitted policies." On this news, HIIQ's stock price fell $4.47 per share, more than 8%, to close at $46.27 per share on November 2, 2018. HIIQ's stock price continued to decline over the next trading session to close at $39.62 per share on November 5, 2018. Then, on November 27, 2018, Aurelius Value published a report entitled "HIIQ: Boiler Rooms, 'Worthless' Policies, and Defrauded Families," alleging, among other things, that more than half of the Company's revenues were derived from boiler room operations that had recently been shut down by the FTC and that a "material portion" of the Company's policies were likely "contaminated by insurance fraud." Following this news, HIIQ's stock price fell $1.93, or nearly 6%, to close at $31.20 per share on November 27, 2018.
A class action lawsuit has already been filed. If you are a HIIQ shareholder and wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/hiiq. You may also contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. You have until April 22, 2019 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
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