EHTH SHAREHOLDER ALERT: Kaskel – GuruFocus.com
PHILADELPHIA CREAM , 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 common stock in the company between March 19, 2018 and July 232020.
According to the complaint, the April 7, 2020, research firm Muddy Waters Capital released a report alleging eHealth engaged in accounting misconduct. Among other things, the report alleged that eHealth’s financial statements for 2019: (i) overstated revenue from $128 million; (ii) operating income overestimated by $263 million; and (iii) understated an operating loss of –$181 million. Following the publication of this report, the shares of the eHealth share fell $13.70 per share, i.e. 11% in value, to close April 8, 2020 at $103.20 per share.
Then, on July 23, 2020when eHealth announced its results for the second quarter of fiscal 2020, the company’s share price fell again, as information in its announcement confirmed substantial aspects of the “member churn” allegations previously affirmed in the Muddy Waters report. Following this additional news, eHealth shares fell further $34.83 per share, or more than 30% in value, to close 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 misconduct alleged above.
Current eHealth sshareholders who purchased or acquired ordinary shares of the Company prior to March 19, 2018 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. Where Adrienne Bell, Esq.) at (484) 229 – 0750, or by email ([email protected]) 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 and acquisition litigation. For more information about the company, please visit
www.kaskelalaw.com. This notice may constitute advertising for attorneys in some jurisdictions.
D.Seamus Kaskela, Esq.
Adrienne Bell, Esq.
SARL DE LOI KASKELA
18 Campus Blvd., Suite 100
Newtown Square, Pennsylvania 19073
(484) 229 – 0750
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SOURCE Kaskela Law LLC