DENVER, CO, January 27, 2020 – Shuman, Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of Health Insurance Innovations, Inc. (“HIIQ” or the “Company”) (Nasdaq: HIIQ). HIIQ operates as a cloud-based technology platform and distributor of individual and family health insurance plans, and supplemental products in the United States.
The Firm’s investigation relates to allegations raised in a class action complaint filed against the Company and certain of its senior officers in the U.S. District Court for the Middle District of Florida. The lawsuit alleges a widespread fraudulent scheme in which agents at the Company’s call centers sold consumers “essentially worthless” health insurance policies in a “classic bait-and-switch” scam. The consumers believed they were purchasing Affordable Care Act (“ACA”) compliant policies but were instead sold limited benefit indemnity plans that were not ACA-compliant. The complaint alleges these individuals were then stuck with thousands of dollars of unpaid medical bills and penalties for not having ACA-compliant insurance. The Federal Trade Commission (“FTC”) eventually shut down the third party which ran HIIQ’s call centers and froze its assets. On November 4, 2019, the federal judge denied HIIQ’s motion to dismiss the class action claims, paving the way for litigation to proceed towards trial.
If you currently own HIIQ common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Brett Stecker toll free at (866) 569-4531 or email Mr. Stecker at email@example.com.