Shareholder Alert: Robbins LLP Announces It Is Investigating eHealth, Inc. (EHTH) for Misleading Shareholders

SAN DIEGO & SANTA CLARA, Calif.--()--Shareholder rights law firm Robbins LLP announces that it is investigating eHealth, Inc. (NASDAQ: EHTH) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. eHealth provides private health insurance exchange services to individuals, families, and small businesses in the United States and China.

If you suffered a loss as a result of eHealth's misconduct, click here.

eHealth, Inc. (EHTH) Accused of Concealing its Highly Unprofitable Business

On January 22, 2019, eHealth issued a press release announcing its full year 2018 results, touting the Company's "operational achievements" and its ability "to exceed [its] revenue and EBITDA expectations for 2018." Contrary to eHealth's representations, on April 8, 2020, Muddy Waters Research published a report disclosing "eHealth's highly aggressive accounting masks what we believe is a highly unprofitable business" and that "the key driver of growth since 2018 has been [eHealth's] reliance on Direct Response television advertising, which attracts an unprofitable, high churn enrollee." As a result of its findings, Muddy Waters concluded that "[eHealth] management is, in our view, running a massive stock promotion." On this news, eHealth's stock price fell $12.82, or 12%, to close at $103.20 per share.

eHealth, Inc. (EHTH) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
lkandinov@robbinsllp.com
Shareholder Information Form

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Contacts

Leo Kandinov
Robbins LLP
lkandinov@robbinsllp.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com

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Contacts

Leo Kandinov
Robbins LLP
lkandinov@robbinsllp.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com