Saxena White Wins Motion to Dismiss Against Health Insurance Innovations, Inc.
, November 4, 2019
On November 4, 2019, Saxena White secured a major victory with an important decision issued by the Middle District of Florida in Keippel v. Health Insurance Innovations, Inc., et al., No. 8:19-cv-421-WFJ-CPT. The Honorable William F. Jung denied Defendants’ motion to dismiss in its entirety, sustaining Lead Plaintiffs’ claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
As the Court’s order denying Defendants’ motion to dismiss summarizes, “Plaintiffs allege a widespread fraudulent scheme in which agents at HIIQ’s distributor call centers (Simple Health) preyed on consumers in search of comprehensive health insurance and sold them essentially worthless policies in a classic bait-and-switch scam.” The Court found that the Complaint’s allegations of scienter were bolstered by allegations that while Defendants made “repeated public representations regarding high customer satisfaction, Defendants were exchanging internal emails about ‘out of control’ consumer complaints.” The case is now in the discovery phase.