BOULDER, Colo. -- (Business Wire)
The
Shuman Law Firm announces that it is investigating potential claims
against certain officers and directors of eHealth, Inc. (“eHealth” or
the “Company”) (NASDAQ: EHTH).
eHealth is a Mountain View, CA-based company that provides online health
insurance services in the United States and China.
The Firm’s investigation relates to potential damages to eHealth caused
by allegedly false and misleading public statements made by the
Company’s senior officers and directors regarding the Company’s true
financial condition and future business prospects. Specifically, the
Firm is investigating eHealth’s senior officers and directors’ public
statements regarding the Company’s conversion rate (the percentage of
applicants who became paying policyholders) and its churn rate (the
percentage of attrition). These metrics were critical to eHealth’s
ability to forecast future business.
On January 14, 2015, eHealth lowered its fiscal year 2014 revenue
guidance to a range of $178 to $180 million from its prior revenue
guidance in the range of $185 million to $194 million. Shortly
thereafter, on February 24, 2015, The Company issued disappointing
fiscal 2014 financial results and disclosed that historical trends for
conversion and churn had changed “significantly”. Following these
revelations, eHealth’s stock price fell dramatically and a class action
lawsuit was filed against the Company, its CEO and CFO. As recently as
January of 2014, eHealth’s stock was trading at more than $60 per share.
The Company’s stock closed on August 28, 2015 at $14.42 per share.
If you currently own eHealth common stock and are interested in
discussing your rights as a shareholder, or have information relating to
this investigation, please contact Kip B. Shuman or Rusty E. Glenn
toll-free at (866) 569-4531or email Mr. Shuman at kip@shumanlawfirm.com
or email Mr. Glenn at rusty@shumanlawfirm.com.
The Shuman Law Firm represents investors throughout the nation,
concentrating its practice in stockholder litigation.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150831005845/en/
Contacts:
The Shuman Law Firm
Kip B. Shuman, Esq., 303-861-3003
kip@shumanlawfirm.com
or
Rusty
E. Glenn, Esq., 303-861-3003
rusty@shumanlawfirm.com
or
Toll-Free:
866-569-4531
Fax: 303-484-4886
www.shumanlawfirm.com
Source: The Shuman Law Firm
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