NEW YORK, April 16, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Health Insurance Innovations, Inc. (“HIIQ” or the “Company”) (NASDAQ: HIIQ). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 9980.
The investigation concerns whether HIIQ and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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.
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.
Robert S. Willoughby