NEW YORK, July 09 10, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Teladoc Health, Inc. (“Teladoc” or the “Company”) (NYSE: TDOC) and certain of its officers. The class action, filed in the United States District Court for the Southern District of New York and registered as 22-cv-04687, is on behalf of a class consisting of all persons and entities other than defendants. who purchased or otherwise acquired Teladoc securities between October 28, 2021 and April 27, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities and to seek remedies under Sections 10(b) and 20(a)) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its senior executives.
If you are a shareholder who purchased or otherwise acquired Teladoc securities during the class period, you have until August 5, 2022 to ask the court to name you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by e-mail are encouraged to include their mailing address, phone number and number of shares purchased.
Teladoc provides virtual healthcare services in the United States and internationally through business-to-business and direct-to-consumer (“D2C”) distribution channels. The Company offers its customers various virtual products and services addressing, among other medical issues, mental health through its BetterHelp D2C product, and chronic diseases.
Teladoc bills itself as “the first and only company to provide a comprehensive, integrated whole-person virtual healthcare solution that both delivers and enables care for a full spectrum of clinical conditions.[.]“Despite recent market concerns about new entrants into telehealth, Amazon.co.ukInc. and Walmart Inc., the Company continued to assure investors of its dominant market position in the industry.
In fact, as recently as February 2022, Teladoc forecast 2022 full year (“FY”) revenue of $2.55 billion to $2.65 billion, along with adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $330 to $355 million. , on the pursuit of anticipated growth thanks to its competitive advantages.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) increased competition, among other factors, was negatively impacting BetterHelp and Teladoc’s chronic care businesses; (ii) as a result, the growth of these companies was less sustainable than the defendants had led investors to believe; (iii) as a result, Teladoc’s fiscal year 2022 revenue and Adjusted EBITDA projections were unrealistic; (iv) as a result of all of the foregoing, Teladoc would be required to recognize a significant non-cash goodwill impairment charge; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On April 27, 2022, Teladoc announced its first quarter (“Q1”) 2022 financial results, including revenue of $565.4 million, which missed consensus estimates by $3.23 million, and “[n]and loss per share of $41.58, mainly attributable to [a] non-cash goodwill impairment charge of $6.6 billion or $41.11 per share[.]”In addition, the company has revised its fiscal 2022 revenue guidance to $2.4 – $2.5 billion and its adjusted EBITDA guidance to $240 – $265 million” to reflect the momentum we are experiencing. currently in the [D2C] mental health and chronic disease markets. In a conference call with investors and analysts that day to discuss Teladoc’s first quarter 2022 results, defendants largely attributed the company’s poor performance, revised guidance for fiscal year 2022 and a charge. non-cash goodwill impairment of $6.6 billion to increased competition in its BetterHelp and chronic care businesses.
On this news, Teladoc’s stock price fell $22.48 per share, or 40.15%, to close at $33.51 per share on April 28, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980