INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of TaskUs, Inc. (TASK) Investors

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased TaskUs, Inc. (“TaskUs” or the “Company”) (NASDAQ: TASK) securities between June 11, 2021 and January 19, 2022, inclusive (the “Class Period”). TaskUs investors have until April 25, 2022 to file a lead plaintiff motion.

Investors suffering losses on their TaskUs investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [e-mail].

On January 20, 2022, Spruce Point Capital Management, LLC published a report alleging, among other things, that TaskUs “has a pattern of exaggerated and inflated business claims, including revenue, and is covering-up financial strain with reduced disclosures, cherry-picked market data, and non-standard key performance metrics.” Regarding the financial strain, the report alleged that “28% of sales [are related] to Facebook and related to the controversial area of ‘Content Moderation,’” which has “requir[ed] more labor to fill tasks, but that it is not translating into additional revenue.”

On this news, TaskUs’s stock fell $5.46, or 15.3%, to close at $30.13 per share on January 20, 2022, thereby injuring investors.

The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) TaskUs was experiencing severe financial strain and business challenges, particularly with its most important customer Facebook; (2) the Content Security market was smaller than Defendants represented and Defendants’ representations were based on outdated market data; (3) TaskUs improperly recognized revenue from certain key contracts; (4) Defendants overstated the size of TaskUs’ workforce as well as employee retention rates, and understated attrition rates; and (5) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.

If you purchased TaskUs securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at [phone], toll-free at [phone], or by email to [e-mail], or visit our website at www.howardsmithlaw.com.

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