Small cap Health Insurance Innovations (NASDAQ: HIIQ) has the dubious distinction of being the most shorted stock on the NASDAQ with short interest of 75.47% according to HighShortInterest.com. Shares have also been hitting lower highs and some lower lows lately:
Small cap Health Insurance Innovations is a market leading cloud-based technology platform and distributor of innovative and affordable health and life insurance products. The Company helps develop insurance products through relationships with best-in-class insurance companies and markets them via its broad distribution network of third-party licensed insurance agents across the nation, its call center network and its unique online capability. Health Insurance Innovations’ Consumer Division includes AgileHealthInsurance.com, a website for researching, comparing and purchasing short-term health insurance products online and HealthPocket.com, a free website that compares and ranks all health insurance plans, and uses objective data to publish unbiased health insurance market analyses and other consumer advocacy research.
Health Insurance Innovations is being forced to defend itself against two federal lawsuits seeking to hold it responsible for the actions of Simple Health Plans, accused by the Federal Trade Commission (FTC) of running a sophisticated health insurance scam that duped consumers out of millions of dollars. The two lawsuits allege that Health Insurance Innovations funded, oversaw and approved what the suits call the deceptive business model of Simple Health Plans which persuaded hundreds of thousands of consumer victims to purchase nearly worthless health insurance plans. A spokesperson for HIIQ sent an official statement to a Florida paper saying:
“The lawsuit has no merit and we will vigorously defend ourselves against all such allegations. Health Insurance Innovations has been supporting the Federal Trade Commission (FTC) and the receiver appointed to Simple [Health Plans] throughout the FTC’s investigation. [Health Insurance Innovations] is not and never has been a defendant in the FTC’s case and