BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Health Insurance Innovations, Inc. (“Health Insurance Innovations” or the “Company”) (NASDAQ: HIIQ) securities between February 28, 2018 and November 27, 2018, inclusive (the “Class Period”). Health Insurance Innovations investors have until April 21, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Health Insurance Innovations investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On November 27, 2018, Aurelius Value published a report stating, among other things, that “[p]reviously sealed documents gathered by the FTC directly undermine management’s claims and prove that a large boiler room operation recently shuttered by the government for a massive alleged fraud was responsible for roughly half of HIIQ’s sales. Evidence also suggests that HIIQ policies have been contaminated by insurance fraud and reveal that other HIIQ brokers prey on consumers with falsehoods.” On this news, shares of HIIQ fell $1.93, or more than 5.8%, on November 27, 2018, thereby damaging investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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.
If you purchased shares of Health Insurance Innovations, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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