Health Insurance Innovations, Inc. (HIIQ) Accused of Engaging in Insurance Fraud

According to the complaint against Health Insurance Innovations, Inc. (Nasdaq: HIIQ) for alleged violations of the Securities Exchange Act of 1934 between February 28, 2018 and November 27, 2018, the Federal Trade Commission ("FTC") accused Health Benefits One LLC ("HBO") of misleadingly selling HIIQ policies as "comprehensive health insurance." In response, HIIQ announced that it suspended its relationship with HBO. Then, on November 27, 2018, Aurelius Value published a report claiming that more than half of HIIQ'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."  The price of HIIQ's stock dropped as a result of this revelation and continues to trade well below its class period high of $61.65.