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EHTH 10-DAY REMINDER: Hagens Berman, National Trial Attorneys, Reminds eHealth (EHTH) Investors Only 10 Days Remain to Move for Lead Plaintiff in Class Action, Encourages Investors Who Suffered $50,000+ Losses to Contact the Firm

SAN FRANCISCO, CA / ACCESSWIRE / May 29, 2020 / Hagens Berman urges investors in eHealth, Inc. (EHTH) who have suffered losses in excess of $50,000 to submit their losses now. The June 8, 2020 lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives is fast approaching.

Class Period: Mar. 19, 2018 - Apr. 7, 2020
Lead Plaintiff Deadline: June 8, 2020
Visit: www.hbsslaw.com/investor-fraud/EHTH
Contact An Attorney Now: EHTH@hbsslaw.com

eHealth (EHTH) Securities Class Action:

The complaint alleges that Defendants misrepresented and concealed eHealth's highly aggressive accounting and modeling assumptions, skyrocketing rate of member churn resulting from the company's pursuit of low quality, loss-making growth, and its reliance on direct response television advertising which attracts an unprofitable high-churn enrollee.

Investors began to learn the truth, according to the complaint, on Apr. 8, 2020, when Muddy Waters Capital published a scathing report about the company, finding that eHealth uses deceptive accounting to mask a significantly unprofitable business. According to Muddy Waters, eHealth makes "overly optimistic" modeling assumptions concerning its health insurance plan life-time values (LTV), obscures customer churn rates, and materially understates costs. As a result, Muddy Waters claims eHealth has grossly overstated its reported revenues and operating profit by hundreds of millions of dollars.

Moreover, Muddy Waters pointed out that while falsely hyping the company as "the Expedia / Zillow of health insurance," corporate insiders have sold $35 million of their personally held stock at inflated prices, including CEO Scott Flanders, who sold 15% of his stake in January 2020 alone.

On this news, the stock plummeted $12.82, or approximately 12%, in a single trading day.

Recently, on Apr. 23, 2020, the Company reported its Q1 2020 financial results, including a nearly 30% decline in cash flow from operations compared to Q1 2019. This news sent the price of eHealth shares plummeting as much as 14% during intraday trading on Apr. 24, 2020.

"We're focused on investors' losses and proving eHealth manipulated various financial metrics to appear more profitable," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you purchased shares of eHealth and suffered significant losses, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding eHealth should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EHTH@hbsslaw.com.

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About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Reed Kathrein

SOURCE: Hagens Berman Sobol Shapiro LLP

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