eHealth (EHTH) Alert: Johnson Fistel Investigates eHealth, Inc.; Investors Suffering Losses Encouraged to Contact Firm

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Apr 08, 2020, 14:37 ET

SAN DIEGO, April 8, 2020 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of the federal securities laws by eHealth, Inc. ("eHealth" or "the Company") (NASDAQ: EHTH).

On April 8, 2020, Muddy Waters Research published a report wherein Muddy Waters detailed a series of alarming red flags about eHealth.

Specifically, Muddy Waters states in the report that "EHTH management is, in our view, running a massive stock promotion. In addition to using aggressive modeling assumptions, they misleadingly downplay the need for ongoing service and retention. This is the crux of how they justify booking multiple years of revenue at one time. Management also manipulates its presentation of churn to be misleadingly low. EHTH 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 this report, the price of the eHealth stock dropped over 10% in mid-day trading on April 8, 2020.

If you have information that could assist in this investigation, including past employees and others, or if you are an eHealth shareholder and are interested in learning more about the investigation, please contact lead analyst Jim Baker ([email protected]) by email or phone at 619-814-4471. If emailing, please include a phone number.

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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

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SOURCE Johnson Fistel, LLP