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DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against eHealth, Inc. and Encourages Investors to Contact the Firm

Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors that purchased eHealth, Inc. (NASDAQ: EHTH) securities between March 19, 2018 and April 7, 2020 (the "Class Period"). Investors have until June 8, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Click here to participate in the action.

On April 8, 2020, analyst Muddy Waters Research issued a report stating that the Company uses "highly aggressive accounting" to mask "a significantly unprofitable business." Muddy Waters wrote that "[a]fter ASC 606 went into effect," eHealth’s "member churn . . . skyrocketed," and concluded "that EHTH is pursuing low quality, lossmaking growth while its LTVs are based on lower churn, pre-growth cohorts." Further, Muddy Waters charged eHealth’s management with "running a massive stock promotion."

On this news, eHealth’s stock price fell approximately 12%, to close at $103.20 per share.

The complaint, filed on April 8, 2020, alleges that eHealth misrepresented and/or failed to disclose to investors: (1) its highly aggressive accounting and modeling assumptions; (2) its skyrocketing rate of member churn, resulting from eHealth’s pursuit of low quality, lossmaking growth; (3) its reliance on direct response television advertising, which attracts an unprofitable, high churn enrollee; and (4) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.

If you purchased eHealth securities during the Class Period, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200603005699/en/

Contacts

Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com