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Oklahoma City, OK (February 22, 2019) – On February 18, 2019, a securities class action lawsuit was filed in the United States District Court for the Middle District of Florida against Health Insurance Innovations, Inc. (NASDAQ: HIIQ).  The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 28, 2018 through November 27, 2018.  According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) a substantial portion of Health Insurance Innovations’ revenue was derived from third parties; (2) these third parties used deceptive tactics to sell Health Insurance Innovations’ policies, including overstating the policy’s coverage and/or selling under the licenses of employees who had no involvement in the underlying sales; (3) regulatory scrutiny of these third parties would materially impact Health Insurance Innovations’ operations; and (4) as a result of the foregoing, defendants’ positive statements about Health Insurance Innovations’ business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.

Specifically, on November 27, 2018, Aurelius Value published a report titled ”HIIQ: Boiler Rooms, ‘Worthless’ Policies, and Defrauded Families,” which alleged, among other things, that more than half of the Company’s revenues were derived from Simple Health and its affiliates and that a ”material portion” of the Company’s policies were likely ”contaminated by insurance fraud.”  On this news, the Company’s stock price fell from $33.13 per share on November 26, 2018 to $31.20 per share on November 27, 2018 – a $1.93 or 5.83% drop.

Plaintiff seeks to recover damages on behalf of all Health Insurance Innovations, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above.  You may move the Court no later than Monday, April 22, 2019 to serve as a lead plaintiff for the entire Class.  However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact:  Robin Hester at rkh@federmanlaw.com