Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against eHealth, Inc.
Oklahoma City, OK (January 28, 2015) – On January 26, 2015, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against eHealth, Inc. (NASDAQ: EHTH) and certain of its officers and directors. The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is October 31, 2014 through January 14, 2015. More specifically, this litigation was filed because on January 14, 2015, eHealth lowered its fiscal year 2014 revenue guidance to a range of $178 million to $180 million from its prior revenue guidance in the range of $185 million to $194 million. eHealth attributed the revision in part because “. . . revenues and earnings were impacted by a shortfall in our Individual & Family Plan (“IFP”) sponsorship and advertising and other ancillary revenues driven by lower than expected IFP application volumes and by the timing of several million dollars of Medicare revenues which were pushed out into the first quarter of 2015. In addition, fourth quarter earnings were impacted by the fact that we spent considerably more than we planned on Medicare marketing costs due primarily to stronger than expected application growth in our Medicare business.” On this news, eHealth shares declined $11.38 per share to close at $9.42 on January 14, 2015.
Plaintiff seeks to recover damages on behalf of all eHealth, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, March 27, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Wed, January 28, 2015
by Robin Hester filed under