PHILADELPHIA , May 28, 2022 /PRNewswire/ -- Kaskela Law LLC announces that it is investigating eHealth, Inc. (NASDAQ: EHTH) ("eHealth" or the "Company") on behalf of the Company's long-term investors.
Recently a securities fraud complaint was filed against eHealth on behalf of certain investors who purchased shares of the Company's common stock between March 19, 2018 and July 23, 2020.
According to the complaint, on April 7, 2020, research firm Muddy Waters Capital published a report alleging that eHealth had engaged in accounting misconduct. Among other thing, the report alleged that eHealth's financial statements for 2019: (i) overstated revenue by $128 million; (ii) overstated operating profit by $263 million; and (iii) understated an operating loss of -$181 million. Following the release of this report, shares of the eHealth's stock declined $13.70 per share, or 11% in value, to close on April 8, 2020 at $103.20 per share.
Then, on July 23, 2020, when eHealth announced its earnings results for the second quarter of fiscal 2020, the company's stock price fell again as the information contained in its announcement confirmed substantive aspects of the "member churn" allegations previously asserted in the Muddy Waters report. Following this additional news, shares of eHealth's stock declined an additional $34.83 per share, or over 30% in value, to close on July 24, 2020 at $79.17 per share.
The investigation seeks to determine whether the members of eHealth's board of directors breached their fiduciary duties in connection with the above alleged misconduct.
Current eHealth stockholders who purchased or acquired shares of the Company's common stock prior to March 19, 2018 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by email (email@example.com) or online at https://kaskelalaw.com/cases/ehealth-inc/ , to receive additional information about this investigation and their legal rights and options.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about the firm please visit
www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
KASKELA LAW LLC
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
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