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 Teladoc Health, Inc. (“Teladoc” or the “Company”) (NYSE: TDOC) securities between October 28, 2021 and April 27, 2022, inclusive (the “Class Period”). Teladoc investors have until August 5, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Teladoc 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 firstname.lastname@example.org.
On April 27, 2022, Teladoc released its first quarter 2022 financial results, reporting revenue of $565.4 million – $3.23 million less than consensus estimates – and “[n]et loss per share of $41.58, primarily driven by [a] non-cash goodwill impairment charge of $6.6 billion or $41.11 per share.” Additionally, the Company revised its Full Year 2022 revenue guidance “to reflect dynamics we are currently experiencing in the [D2C] mental health and chronic condition markets.” The Company attributed its poor performance to increased competition in its chronic care businesses.
On this news, Teladoc’s stock fell $22.48, or 40.2%, to close at $33.51 on April 28, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) increased competition, among other factors, was negatively impacting Teladoc’s BetterHelp and chronic care businesses; (2) accordingly, the growth of those businesses was less sustainable than Defendants had led investors to believe; (3) as a result, Teladoc’s revenue and adjusted EBITDA projections for FY 2022 were unrealistic; (4) as a result of all the foregoing, Teladoc would be forced to recognize a significant non-cash goodwill impairment charge; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Teladoc 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 (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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