Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against eHealth, Inc. (EHTH)

/EIN News/ -- LOS ANGELES, June 04, 2020 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming June 8, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of eHealth, Inc. ("eHealth" or the Company") (NASDAQ: EHTH) investors who purchased securities between March 19, 2018 and April 7, 2020, inclusive (the “Class Period).

If you suffered a loss on your eHealth investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information https://www.glancylaw.com/cases-application/case-information/ehealth-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

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 or otherwise acquired eHealth securities during the Class Period, you may move the Court no later than June 8, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. 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 the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com

Distribution channels: Consumer Goods, Law

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