NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF continues its investigation into eHealth, Inc. (NasdaqGS: EHTH).
On April 8, 2020, Muddy Waters Capital reported that the Company’s «highly aggressive accounting masks . . . a significantly unprofitable business,» due to member churn and an overstated “lifetime value” or “LTV” of its plans, among other things, and that the Company’s financial statements for 2019 significantly overstated revenue and operating profit. Then, on July 23, 2020, the Company announced its financial results for the second quarter of 2020, disclosing in a subsequent investor call that the Company «saw increased levels of Medicare Advantage plan churn compared to our historical observations» and projected the LTV of its Medicare Advantage policies “to decline up to 10% in the fourth quarter of 2020 and by mid-single digits for the full year” as reflected in its revised 2020 annual guidance.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. The court presiding over that case has denied the Company’s motion to dismiss in part, allowing the case to move forward.
KSF’s investigation is focusing on whether eHealth’s officers and/or directors breached their fiduciary duties to eHealth’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of eHealth shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nasdaqgs-ehth/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking to recover investment losses due to corporate fraud and malfeasance by publicly traded companies. KSF has offices in New York, California, Louisiana and New Jersey.
To learn more about KSF, you may visit www.ksfcounsel.com.
Contacts
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
[email protected]
1-877-515-1850