NEW ORLEANS, March 01, 2022 (GLOBE NEWSWIRE) — ClaimsFiler, a FREE shareholder information service, reminds investors that they have until March 18, 2022 to file lead plaintiff applications in a securities class action lawsuit against eHealth, Inc. (NasdaqGS: EHTH), if they purchased the Company’s shares between March 19, 2018 and July 23, 2020, inclusive (the “Class Period”). This action is pending in the United States District Court for the Northern District of California.
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eHealth investors should visit us at https://claimsfiler.com/cases/nasdaq-ehth-1/ or call toll-free (844) 367-9658. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
About the Lawsuit
eHealth and certain of its executives are charged with failing to disclose material informati on during the Class Period, violating federal securities laws.
On April 7, 2020, Muddy Waters Capital reported that the Company’s “highly aggressive accounting masks . . . a significantly unprofitable business,” due to member churn and an overstated “lifetime value” or “LTV” of its plans, among other things, and that the Company’s financial statements for 2019 significantly overstated revenue and operating profit. On this news, shares of eHealth declined, from a closing price of $130.57 per share on April 6, 2020, to $116.90 per share the next day on April 7, 2020, before declining to $103.20 on April 8, 2020.
Then, on July 23, 2020, the Company announced its financial results for the 2Q2020, disclosing that the Company “saw increased levels of Medicare Advantage plan churn compared to our historical observations” and projected the LTV of its Medicare Advantage policies “to decline up to 10% in the fourth quarter of 2020 and by mid-single digits for the full year” as reflected in its revised 2020 annual guidance. On this news, shares of eHealth fell from a closing price of $114 per share on July 23, 2020 to $79.17 per share on July 24, 2020.
The case is In re eHealth Inc. Securities Litigation, No. 4:20-cv-02395.
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