Shareholder rights law firm Robbins LLP reminds investors that a purchaser of Health Insurance Innovations, Inc. (NASDAQ: HIIQ) filed a derivative complaint against the company's officers and directors for alleged breaches of fiduciary duties and gross mismanagement. Health Insurance Innovations, Inc. operates a cloud-based technology platform and is a distributor of individual and family health insurance plans.
If you suffered a loss as a result of HIIQ's misconduct, click here.
Health Insurance Innovations, Inc. (HIIQ) Accused of Misleading Investors
According to the complaint, HIIQ filed its Florida third-party administrator ("TPA") application in July 2016, which HIIQ needed to operate its core business. While HIIQ was in its application process, the company was under investigation for allegedly fraudulent business practices in 42 states. HIIQ's Florida TPA application was denied in June 2017, due to material errors and omissions, including the omission that two of its officers had been named in lawsuits "involving dishonesty, breach of trust or a financial dispute." HIIQ concealed the denial until it filed its August 4, 2017 Form 10-Q, which failed to disclose the necessity of obtaining a TPA license and deliberately understated the potentially devastating consequences the denial would have on company operations. Then, in September 2017, Seeking Alpha released an article revealing the disastrous "domino effect" the TPA denial caused, including loss of additional licenses. On this news, the share price declined by 37%, closing at $19.75, and has yet to recover.
Health Insurance Innovations, Inc. (HIIQ) Shareholders Have Legal Options
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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