EHEALTH INQUIRY LAUNCHED by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Investigates Officers and Directors of eHealth, Inc. – EHTH
NEW ORLEANS–(COMMERCIAL THREAD) – Former Louisiana Attorney General Charles C. Foti, Jr., Esq., Partner at Kahn Swick & Foti, LLC (“KSF”) law firm, announces KSF has opened an investigation into eHealth , Inc. (NasdaqGS: EHTH).
On April 8, 2020, Muddy Waters Capital reported that the company’s “very aggressive accounting masked … significantly unprofitable business”, due to member churn rate and an overestimated “Lifetime Value” or “LTV” of its plans, among others, and that the Company’s 2019 financial statements significantly overstated revenues and operating profit. Then, on July 23, 2020, the company announced its financial results for the second quarter of 2020, revealing in a subsequent investor call that the company “has seen increased levels of opt-out from Medicare Advantage plans compared to our observations. historical figures “and projected the LTV of its Medicare Advantage policies” are expected to decline by as much as 10% in the fourth quarter of 2020 and up to 10% for the whole year, “as reflected in its revised annual forecast for 2020.
Subsequently, the Company and some of its officers were sued in a securities class action, accusing them of failing to disclose material information during the Class Period, in violation of federal laws. on securities. Recently, the court presiding over this case rejected the company’s request for a partial dismissal, allowing the case to move forward.
KSF’s investigation focuses on whether the officers and / or directors of eHealth breached their fiduciary duties to eHealth shareholders or otherwise violated federal or state laws.
If you have any information that could assist KSF in its investigation, or if you have been a long-time holder of eHealth shares and would like to discuss your legal rights, you can, without obligation or cost to you, call toll-free 1 -877 -515-1850 or email Lewis Kahn, Managing Partner of KSF ([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 leading securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, fund managers and retail investors – seeking to recoup investment losses due to corporate fraud and embezzlement. listed on the stock exchange. KSF has offices in New York, California, Louisiana, and New Jersey.
To learn more about KSF, you can visit www.ksfcounsel.com.