In the Matter of Health Insurance Innovations, Inc., now named Benefytt Technologies, Inc., et al. Admin. Proc. File No. 3-20932

On July 20, 2022, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Health Insurance Innovations, Inc., now named Benefytt Technologies, Inc. (“HII”) and Gavin D. Southwell (“Southwell”) (collectively, the “Respondents”). In the Order, the Commission found that from March 2017 through March 2020, HII, a technology platform, billing administrator and distributors of short-term and limited health insurance products, and its CEO Southwell made a series of false and misleading statements to investors, which concealed extensive consumer complaints about products being sold through misrepresentations. In total, the Commission ordered the Respondents to pay $320,000.00 in disgorgement, $41,511.00 in prejudgment interest, and $11,750,000.00 in civil money penalties, for a collective total of $12,111,511.00, to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-11084.

The Fair Fund includes the $12,111,511.00 paid by the Respondents. The Fair Fund and has been deposited in an interest-bearing account at the U.S. Department of the Treasury, and any interest accrued will be added to the Fair Fund.

On December 1, 2022, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-96435.

On September 18, 2023, the Commission issued an order appointing Epiq Class Action & Claims Solutions, Inc., as the Fund Administrator to oversee the administration and distribution of the Fair Fund, and set the administrator’s bond amount. See the Commission’s Order: Release No. 34-98416.

On September 25, 2023, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-98493 and the Proposed Plan.

On November 14, 2023, the Commission issued an order approving the Proposed Plan of distribution and simultaneously published the approved Plan of Distribution (the “Plan”). See the Commission’s Order: Release No. 34-98936 and the Plan

The Plan provides that the distribution of the Fair Fund shall be made as calculated by the methodology used in the Plan of Allocation to investors based on their losses on shares of Health Insurance Innovations, Inc. common stock registered with the Commission and traded under the symbol HIIQ purchased or acquired during the period when the stock price was inflated by the Company’s false and misleading statements, from March 2, 2017 through March 12, 2019, inclusive, due to the misconduct of the Respondents.

On November 13, 2024, the Commission issued an order approving the disbursement of $12,633,904.93 from the Fair Fund for distribution to eligible investors.  See the Commission’s Order: Release No. 34-101609.

For more information, please contact the Distribution Agent:

Epiq Class Action & Claims Solutions, Inc.
Telephone Number: 877-676-3395
Website: healthinsuranceinnovationsfairfund.com
Email: info@HealthInsuranceInnovationsFairFund.com