PHILADELPHIA, April 24, 2020 /PRNewswire/ -- Berger Montague is investigating securities fraud claims against eHealth, Inc. ("eHealth" or the "Company") on behalf of all purchasers of eHealth common stock (NASDAQ: EHTH) between March 19, 2018 and April 7, 2020 (the "Class Period").
If you purchased eHealth shares, have information, would like to discuss this investigation, or have any questions concerning your rights or interests, please contact our attorneys Barbara Podell, Esq. at (215) 875-4690 or Andrew Abramowitz, Esq. at (215) 875-3015, or visit www.bergermontague.com/ehealth.
eHealth is an online insurance marketplace based in Santa Clara, California. According to the lawsuit, the Company misled investors about its highly aggressive accounting practices and its skyrocketing rate of member churn. The Company is alleged to have concealed from investors that it pursued low-quality growth and relied upon direct-response television advertising, which historically has attracted unprofitable, high-churn enrollees.
On April 8, 2020, analyst Muddy Waters Research issued a highly critical report on eHealth. It claimed, among other red flags, that the Company's management was "running a massive stock promotion" that involved the use of "aggressive modeling assumptions" and questionable revenue recognition practices which has the effect of "manipulate[ing] its presentation of churn to be misleadingly low."
On the day that the Muddy Waters report was published, shares of eHealth declined approximately 12%, or $13.70 per share, falling from $116.90 per share to $103.20 per share in a single day.
If you purchased eHealth common stock during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is June 8, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding eHealth, Inc. should consider their options to help Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of successful recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.
Barbara Podell, Shareholder
Andrew Abramowitz, Senior Counsel
SOURCE Berger Montague