
FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
In May 2020, a class-action lawsuit was filed against Benefytt Technologies and Health Plan Intermediaries Holdings for allegedly misleadingly marketing that health insurance policies provide comprehensive coverage when, according to the complaint, the policies provide limited coverage that excludes things such as preexisting conditions and prescription drugs and impose low dollar limits on other services. Plaintiffs also claim that the companies market the health insurance policies with “largely bogus” add-on products – such as discount cards, association memberships, and accidental health insurance – to make the coverage seem more comprehensive than it actually is. (Griffin et al v. Benefytt Technologies, Inc. f/k/a Health Insurance Innovations, Inc. and Health Plan Intermediaries Holdings, Inc., Case No. 20-cv-630, N.D. Ala.)
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Agency worries MLM defendants are dissipating assets.
Patrick Coffee, The Wall Street Journal
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