NEW YORK, NY / ACCESSWIRE / March 17, 2022 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following publicly-traded companies. You can review a copy of the Complaints by visiting the links below or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss, you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
eHealth, Inc. (NASDAQ:EHTH)
Class Period: April 26, 2018 – July 23, 2020
Deadline: March 18, 2022
For more info: www.bgandg.com/ehth.
The Complaint in the Class Action alleges that the assumption that eHealth’s customers would renew its policies was unrealistic and contrary to eHealth’s recent experience of both cancellations and renewals. Beginning in 2017, eHealth started soliciting Medicare customers with television advertising. Late-night commercials boasting $0 monthly plan premiums effectively generated a surge in customers in a short period of time. Between 2017 and 2018, the number of Medicare-related insurance applications submitted to eHealth by applicants grew by 39%. These customers, however, were notorious for cancelling their policies in short periods of time, causing eHealth to experience sky-rocketing “member churn” ratios, i.e., the percentage of customers who cancel their policies within the first year. Notwithstanding, eHealth was able to provide analysts and investors with record-setting earnings due to the fact that it was able to recognize three- to five-years of commission revenue for these policies upfront and immediately.
The Complaint further alleges that Class members were materially harmed by eHealth’s false and misleading statements. As a direct result of Defendants’ materially false and misleading statements, eHealth’s stock price artificially increased from a relative steady price of around $15.32 per share of common stock on March 19, 2018 to $136.32 prior to April 8, 2020. It was on that day that Muddy Waters Capital, a well-known and highly respected research firm, published a report revealing eHealth’s accounting misconduct. The report disclosed, among other things, that eHealth’s “highly aggressive accounting masks [] a significantly unprofitable business,” “that the key driver of growth since 2018 has been EHTH’s reliance on Direct Response television advertising, which attracts an unprofitable, high churn enrollee,” “that EHTH’s persistence assumptions in its LTV model [under ASC 606] seem highly aggressive when compared to reality.” Muddy Waters report also disclosed that eHealth’s financial statements for 2019: (a) overstated revenue by $128 million; (b) overstated operating profit by $263 million; and (c) understated an operating loss of -$181 million. The Muddy Waters report resulted in a sharp decline in the price of eHealth’s stock, plummeting to $103.20 per share.
Subsequently, on July 23, 2020, when eHealth announced its earnings results for the second quarter of fiscal 2020, its stock price fell again as the information contained in its announcement confirmed substantive aspects of the “member churn” allegations previously asserted in the Muddy Waters report. In response, eHealth’s stock price declined from a closing price of $114 per share on July 23, 2020 to $79.17 per share on July 24, 2020.
Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corporation (NASDAQ:ELMS; ELMSW; FIII; FIIIW; FIIIU)
Class Period: March 31, 2021 – February 1, 2022
Deadline: April 4, 2022
For more info:www.bgandg.com/elms.
The Complaint alleges that the Defendants made materially false and/or misleading statements because they misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operations, and prospects, which were known to Defendants or recklessly disregarded by them. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) ELMS’s previously issued financial statements were false and unreliable; (2) ELMS’s earlier reported financial statements would need restatement; (3) certain ELMS executives and/or directors purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation; (4) on November 25, 2021 (Thanksgiving), the Company’s Board formed an independent Special Committee to conduct an inquiry into certain sales of equity securities made by and to individuals associated with the Company; and (5) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. As a result, the Company’s share price fell $2.88 per share, or 51%, to close at $2.71 per share on February 2, 2022, on unusually heavy trading volume, damaging investors.
Fennec Pharmaceuticals Inc.(NASDAQ:FENC)
Class Period: May 28, 2021 – November 26, 2021
Deadline: April 11, 2022
For more info:www.bgandg.com/fenc.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Fennec had not successfully remediated, and overstated its efforts to remediate, issues with the manufacturing facility of its drug product manufacturer for PEDMARK; (2) as a result, the FDA was unlikely to approve the Resubmitted Pedmark NDA; (3) accordingly, the regulatory and commercial prospects of the Resubmitted Pedmark NDA were overstated; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
212-697-6484 | [email protected]
SOURCE: Bronstein, Gewirtz and Grossman, LLC
View source version on accesswire.com:
https://www.accesswire.com/691163/EHTH-ELMS-FENC-Upcoming-Class-Action-Deadlines-Bronstein-Gewirtz-Grossman-LLC-A-Top-Class-Action-Firm-Reminds-Investors-to-Contact-the-Firm