Stock Alert: EHealth Down 15% After Shorted By Carson Block

(RTTNews) - Shares of eHealth, Inc. (EHTH) are currently down over 15% on Wednesday morning trade after Carson Block's Muddy Waters Research shorted the online health insurance company.

EHTH is currently trading at $98.62, down $18.28 or 15.64%, on the Nasdaq. Ehealth reported a market value of $3 billion as of Tuesday's close.

On CNBC's Squawk Box, Block disclosed that his fund Muddy Waters Research has taken a short position in eHealth.

According to Block, the company is not a fraud but is just intellectually fraudulent. "It's a perfect storm of a new management that really wanted, in our view, to pump the stock," Block said. "From a legal perspective it's not a fraud. Intellectually, it's fraudulent."