Health Insurance Innovations, Inc. (NASDAQ: HIIQ)
On September 11, 2017, SeekingAlpha published a contributor’s report entitled “Health Insurance Innovations: Penalties To Exceed $100 Million And Undisclosed ‘Domino Effect’.”
The author reported that on June 1, 2017, Florida’s Office of Insurance Regulation (“OIR”) rejected HIIQ’s efforts in Florida to obtain a Certificate of Authority to act as a Third-Party Administrator. The author also quoted from the Company’s petition to contest the OIR’s decision: “The application denial would trigger a duty to report (and thus raise the specter of additional renewal denials) in […] every state in which [HIIQ] would seek to pursue any form of insurance-related licensure in the future (thus raising the specter of a domino effect of denials that would have to be reported)” and “to say that the interests of [HIIQ] as an entity would be substantially affected is a radical understatement.”
This news drove the price of HIIQ shares down $6.55 to close at $23.75 on September 11, 2017 – a loss of nearly 22%.
“We’re focused on the Company’s apparent omissions related to its back and forth with the OIR and the relative importance of licensure in Florida to HIIQ’s business as a whole,” said Hagens Berman partner Reed Kathrein.
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