Pomerantz Law Firm Notifies Investors of eHealth, Inc. of a Pending Lawsuit and … – Press Release


NEW YORK, March 12, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP notifies investors of eHealth, Inc. EHTH (“eHealth” or the “Company”) of a pending lawsuit against eHealth and certain of its officers.   The class action, In re eHealth Inc. Securities Litigation, No. 4:20-cv-02395-JST (the “Class Action”), is pending in the United States District Court for the Northern District of California on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired eHealth common stock between April 26, 2018 and July 23, 2020, inclusive (the “Class” and the “Class Period”).  The Class Action pursues claims against the Defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).

If you are a shareholder who purchased eHealth stock during the Class Period, you have until March 18, 2022 to ask the Court to appoint you as Lead Plaintiff for the class.  To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

eHealth is a health insurance broker that focuses on selling Medicare-related policies on behalf of private insurers.  Its main source of revenue is commissions from selling Medicare Advantage, Medicare Supplement, and Medicare Part D prescription drug policies. On January 1, 2018, eHealth adopted and implemented a new accounting standard for recognizing revenue.  This standard, referred to herein as Accounting Standard Codification 606 or ASC 606, allowed eHealth to recognize immediately the entirety of the commissions it expected to receive over the expected life of the policies.  Although eHealth sold annual policies that could be cancelled at any time by the consumer, it assumed that its policies would be renewed for…