To join this class action, please complete the following Investor Certification.  [contact-form-7 id=”1504″ title=”eHealth, Inc. (NASDAQ:  EHTH) Investor Certification”]

Oklahoma City, OK (April 9, 2020) – On April 8, 2020, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against eHealth, Inc. (NASDAQ: EHTH).  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 March 19, 2018 through April 7, 2020.  More specifically, the Complaint alleges that throughout the Class Period, eHealth, Inc. made materially false and/or misleading statements, as well as failed to disclose material adverse facts to investors. Specifically, defendants misrepresented and/or failed to disclose to investors that: (1) it had highly aggressive accounting and modeling assumptions; (2) it suffered from skyrocketing rate of member churn, resulting from eHealth’s pursuit of low quality, lossmaking growth; (3) it relied 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.

Before the market opened on April 8, 2020, analyst Muddy Waters Research issued a report providing that eHealth’s management may have misled investors regarding, among other things, member churn and on how eHealth books its revenue. Muddy Waters wrote that EHTH’s “member churn . . . skyrocketed,” and concluded “that EHTH is pursuing low quality, lossmaking growth while its LTVs are based on lower churn, pre-growth cohorts.” On this news, the stock plummeted from its April 7, 2020 closing price of $116.02 per share to an April 8, 2020 closing price of $103.20 per share, a one day drop of $12.82 or approximately 12%.

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 Monday, June 8, 2020 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.

If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact:  Robin Hester at rkh@federmanlaw.com