According to the Complaint, Health Insurance Innovations, Inc. ("HIIQ" or the "Company") purports to distribute individual and family health insurance plans, including short-term medical insurance plans, and guaranteed-issue and underwritten health benefit insurance plans. Health Plan Intermediaries Holdings, LLC (“HPIH”) is one of the
The Complaint 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, the Complaint alleges that 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.
On May 13, 2019, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiff filed a consolidated Complaint on July 19. Defendants filed a Motion to Dismiss the consolidated Complaint on August 28. On November 4, the Court issued an Order denying Defendants' Motion to Dismiss.
Plaintiffs filed a Motion for Class Certification on May 21, 2020. On August 28, the Court issued an Order granting Plaintiff's Motion for Class Certification.