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Lawsuit filed for Investors in shares of eHealth, Inc. (NASDAQ: EHTH) over allegedly Misleading Statements

04-15-2020 11:49 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Shareholders Foundation

A lawsuit was filed on behalf of investors in eHealth, Inc. (NASDAQ: EHTH) shares over alleged securities laws violations.

A lawsuit was filed on behalf of investors in eHealth, Inc. (NASDAQ: EHTH) shares over alleged securities laws violations.

An investor, who purchased shares of eHealth, Inc. (NASDAQ: EHTH), filed a lawsuit over alleged violations of Federal Securities Laws by eHealth, Inc.

Investors who purchased shares of eHealth, Inc. (NASDAQ: EHTH) have certain options and for certain investors are short and strict deadlines running. Deadline: June 8, 2020. NASDAQ: EHTH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On April 8, 2020, a report was published wherein a series of allegedly alarming red flags about eHealth were detailed. Specifically, the report stated that "EHTH management is, in our view, running a massive stock promotion. In addition to using aggressive modeling assumptions, they misleadingly downplay the need for ongoing service and retention. This is the crux of how they justify booking multiple years of revenue at one time. Management also manipulates its presentation of churn to be misleadingly low. EHTH appears to be booking multi-year "tail" revenue at the end of each cohort's estimated life, which is extremely aggressive in light of the significantly elevated churn."

The plaintiff claims that between March 19, 2018 and April 7, 2020, the defendants misrepresented and/or failed to disclose to investors that it had highly aggressive accounting and modeling assumptions, that it suffered from skyrocketing rate of member churn, resulting from eHealth's pursuit of low quality, lossmaking growth, that it relied on direct response television advertising, which attracts an unprofitable, high churn enrollee, and that as a result of the foregoing, defendants' public statements were materially false and misleading at all relevant times.

Those who purchased shares of eHealth, Inc. (NASDAQ: EHTH) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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