NEW YORK, April 12, 2020 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of eHealth, Inc. ("eHealth" or the "Company") (NASDAQ: EHTH). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether eHealth and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 8, 2020, during pre-market hours, short-seller Muddy Waters Research ("Muddy Waters") published a report alleging, among other red flags, that "[eHealth] management is . . . running a massive stock promotion," that, "[i]n addition to using aggressive modeling assumptions, [management] misleadingly downplay[ed] the need for ongoing service and retention," that "[t]his is the crux of how [management] justif[ies] booking multiple years of revenue at one time," that "[m]anagement also manipulates its presentation of churn to be misleadingly low," and that "[eHealth] appears to be booking multi-year 'tail' revenue at the end of each cohort's estimated life, which is extremely aggressive in light of the significantly elevated churn."
Following publication of the Muddy Waters report, eHealth's stock price fell $13.70 per share, or 11.72%, to close at $103.20 per share on April 8, 2020, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 9980
