Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against First Solar, eHealth, and NRx Pharmaceuticals and Encourages Investors to Contact the Firm

NEW YORK, Jan. 23, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of First Solar, Inc. (NASDAQ: FSLR), eHealth, Inc. (NASDAQ: EHTH), and NRx Pharmaceuticals, Inc. (NASDAQ: NRXP, NRXPW). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

First Solar, Inc. (NASDAQ: FSLR)

Class Period: February 22, 2019 – February 20, 2020

Lead Plaintiff Deadline: March 8, 2022

On January 15, 2020, Barclays reported that First Solar had “seemingly been, in large part, priced-out of the U.S. downstream solar market” and that the Company had concealed its rapidly declining market share through misleading financial reporting by including projects in its Project Development pipeline that had actually been completed in prior years.

On this news, First Solar’s stock fell $4.03, or 7%, to close at $54.75 per share on January 15, 2020, thereby injuring investors.

Then, on February 6, 2020, Barclays stated that, in an attempt to gain back its market share, First Solar was “bidding more aggressively, leading to lower [Project Development contract] prices, and finally cutting into margins.”

On this news, First Solar’s stock fell $0.45 to close at $52.65 per share on February 6, 2020, thereby injuring investors further.

Then, on February 20, 2020, First Solar announced that it was exploring a sale of its Project Development Business. The Company also disclosed that it was experiencing “challenges with regard to certain aspects of the overall cost per watt” and that it would not be realizing its cost per watt goals.

On this news, First Solar’s stock fell $8.73, or 15%, to close at $50.59 per share on February 21, 2020, thereby injuring investors further.

For more information on the First Solar class action go to: https://bespc.com/cases/FSLR

eHealth, Inc. (NASDAQ: EHTH)

Class Period: April 26, 2018 – July 23, 2020

Lead Plaintiff Deadline: March 18, 2022

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 several years. Consequently, for many of eHealth’s Medicare-related policies, it recognized between three and five years of commissions immediately upon the sale of the policy.

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.

For more information on the eHealth class action go to: https://bespc.com/cases/EHTH

NRx Pharmaceuticals, Inc. (NASDAQ: NRXP, NRXPW)

Class Period: June 1, 2021 – November 4, 2021

Lead Plaintiff Deadline: March 21, 2022

NRx is a clinical-stage small molecule pharmaceutical company that develops various therapeutics for the treatment of central nervous system disorders and life-threatening pulmonary diseases. The Company’s products include, among others, ZYESAMI, an investigational pre-commercial drug for COVID-19 related respiratory failure.

In June 2021, NRx announced that it filed an application with U.S. Food and Drug Administration (“FDA”) requesting Emergency Use Authorization (“EUA”) for ZYESAMI (Aviptadil-acetate) to treat critically ill COVID-19 patients suffering with respiratory failure (the “ZYESAMI EUA Application”).

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the ZYESAMI EUA Application contained insufficient data regarding the potential benefits and risks of ZYESAMI; (ii) accordingly, the FDA was unlikely to approve the ZYESAMI EUA Application in its present form; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On November 4, 2021, NRx issued a press release “announc[ing] that the [FDA] has declined to issue an [EUA] for ZYESAMI® (aviptadil). The FDA stated that it was unable to issue the EUA at this time due to insufficient data regarding the known and potential benefits of the medicine and the known and potential risks of ZYESAMI in patients suffering from Critical COVID-19 with respiratory failure.”

On this news, NRx’s stock price fell $2.27 per share, or 25.45%, to close at $6.65 per share on November 5, 2021.

For more information on the NRx Pharmaceuticals class action go to: https://bespc.com/cases/NRXP

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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