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 April 26, 2018 and July 23, 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: 1) statements made by defendants gave investors the false impression that the commission receivables reported by eHealth had no associated costs; and 2) the Company failed to disclose that eHealth in fact had additional operating expenses that it must incur in order to retain customers and keep them from cancelling their policies within the first year. These costs included the cost of providing “customer care service,” and these operating costs had to be offset against any commissions receivable.
Shareholders have until March 18, 2022 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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