SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by eHealth, Inc. (NASDAQ: EHTH) and certain of its officers. eHealth provides online health insurance services for individuals, families and small businesses in the United States.
Specifically, Johnson & Weaver’s investigation seeks to determine whether certain statements regarding eHealth’s business and prospects were false and misleading when made. On January 14, 2015, eHealth announced disappointing preliminary revenue results for the quarter ended December 31, 2014. Revenue for the fourth quarter of 2014 is expected to be in the range of $43 to $45 million compared to the average estimate of $52.63 million by Capital IQ. Fourth quarter 2014 net loss per share is expected to be in the range of ($0.56)-(0.47) vs. Capital IQ Consensus estimate of ($0.06).
The Company cited that "Fourth quarter revenues and earnings were impacted by a shortfall in our Individual & Family Plan sponsorship and advertising and other ancillary revenues driven by lower than expected IFP application volumes and by the timing of several million dollars of Medicare revenues which were pushed out into the first quarter of 2015. In addition, fourth quarter earnings were impacted by the fact that we spent considerably more than we planned on Medicare marketing costs due primarily to stronger than expected application growth in our Medicare business." On the news, eHealth shares plummeted more than 50% in after hours trading on January 14, 2015.
If you are a eHealth shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.