INVESTOR ALERT: Class Action Lawsuit Against eHealth, Inc. Announced by Law Offices of Howard G. Smith

BENSALEM, Pa.--(BUSINESS WIRE)--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of the common stock of eHealth, Inc. (“eHealth” or the “Company”) EHTH between October 31, 2014 and January 14, 2015, inclusive (the “Class Period”). eHealth is a technology company that provides online health insurance services and facilitates the matching of insurance carriers with individuals, families and businesses.

The Complaint alleges that defendants made false and/or misleading statements regarding the Company's operations, finances and future prospects, including statements claiming that eHealth was uniquely poised to benefit from the insurance marketplaces promoted in the U.S. Affordable Care Act (“ACA”).

On January 14, 2015, eHealth announced disappointing preliminary financial results for the quarter ended December 31, 2014. The Company reported that it expects quarterly revenues of $43-45 million, and losses per share of $0.47 to $0.56, well below the consensus of revenues of $52.6 million and per-share losses of $0.11. The Company also reported a 41% year-over-year decline in submitted applications, and higher marketing costs in its Medicare segment. Following this news, eHealth shares fell more than 50% on January 15, 2015, on heavy volume.

If you are a member of the Class described above, you have until March 27, 2015, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.