The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of eHealth, Inc. (NASDAQ: EHTH) who purchased shares between March 19, 2018 and April 7, 2020. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the eHealth lawsuit alleges that the Company 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) that as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.
Shareholders have until June 8, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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