BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming June 8, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired eHealth, Inc. ("eHealth" or the Company") (NASDAQ: EHTH) securities between March 19, 2018 and April 7, 2020, inclusive (the “Class Period”).
Investors suffering losses on their eHealth investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On April 8, 2020, Muddy Waters Research published a report alleging, among other things, that eHealth misled investors regarding member churn and revenue recognition. The report stated that the Company's “member churn . . . skyrocketed” and “that EHTH is pursuing low quality, lossmaking growth while its LTVs are based on lower churn, pre-growth cohorts.”
On this news, eHealth's stock price fell $12.82, nearly 12%, to close at $103.20 per share on April 8, 2020, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (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, you may move the Court no later than June 8, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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