The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Teladoc Health, Inc. (TDOC) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.

If you are a shareholder who suffered a loss, click here to participate.

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.

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If you purchased Teladoc securities during the Class Period, you may move the Court no later than August 5, 2022 to ask the Court to appoint you as lead plaintiff. 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 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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