Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until March 18, 2022 to file lead plaintiff applications in a securities class action lawsuit against eHealth, Inc. (NasdaqGS: EHTH), if they purchased the Company’s shares between March 19, 2018 and July 23, 2020, inclusive (the “Class Period”). This action is pending in the United States District Court for the Northern District of California.
What You May Do
If you purchased shares of eHealth as above and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nasdaqgs-ehth/ to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by March 18, 2022.
About the Lawsuit
eHealth and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On April 7, 2020, Muddy Waters Capital reported that the Company’s "highly aggressive accounting masks . . . a significantly unprofitable business," due to member churn and an overstated “lifetime value” or “LTV” of its plans, among other things, and that the Company’s financial statements for 2019 significantly overstated revenue and operating profit. On this news, shares of eHealth declined, from a closing price of $130.57 per share on April 6, 2020, to $116.90 per share the next day on April 7, 2020, before declining to $103.20 on April 8, 2020.
Then, on July 23, 2020, the Company announced its financial results for the 2Q2020, disclosing that the Company “saw increased levels of Medicare Advantage plan churn compared to our historical observations” and projected the LTV of its Medicare Advantage policies “to decline up to 10% in the fourth quarter of 2020 and by mid-single digits for the full year” as reflected in its revised 2020 annual guidance. On this news, shares of eHealth fell from a closing price of $114 per share on July 23, 2020 to $79.17 per share on July 24, 2020.
The case is In re eHealth Inc. Securities Litigation, No. 4:20-cv-02395.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California, Louisiana and New Jersey.
To learn more about KSF, you may visit www.ksfcounsel.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222006312/en/
Contacts
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
