Court filing looks favorable for Health Insurance Innovations, says B. Riley FBR
The U.S. Court for the Southern District of Florida yesterday filed a ruling regarding the ongoing legal matter between the Federal Trade Commission and Simple Health, B. Riley FBR analyst Randy Binner tells investors in a research note. The analyst's read of the filing is that Health Insurance Innovations is in agreement with, and will execute the process of, the notification of Simple Health clients that they may have been mis-sold health insurance policies by Simple Health. Binner, who admits to not knowing if Health Insurance Innovations will be reimbursed for the cost of these notifications, expects this process to have a marginal financial impact on the company. The ruling also notes that Health Insurance does not admit culpability, nor was found culpable, for the underlying conduct of Simple Health, the analyst adds. He believes the resolution of uncertainty around the FTC matter should be positive for Health Insurance shares. He maintains a Buy rating on Health Insurance Innovations with a $45 price target.