Health Insurance Innovations Accused of Hiding Rejection of a Major License Application

Investors of Health Insurance Innovations (NasdaqGM: HIIQ) filed a securities class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 4, 2016 and September 11, 2017. According to the complaint, Health Insurance Innovations officials touted positive projections for the company's future growth while omitting that the Florida Office of Insurance Regulation ("OIR") had denied its application for a third-party insurance administrators ("TPA") license, which is required for the company to operate in Florida. When a research report revealed that Health Insurance Innovations' application had been denied because the company continuously failed to provide information requested by the OIR, the company's stock fell $6.55 per share, or nearly 22%, to close at $23.35 per share on September 11, 2017. Since then, the company's stock has fallen even further, closing at $22.80 per share on December 8, 2017.