Teladoc, Inc. Class Action lawsuit - TDOC
- Company Name
- Teladoc, Inc.
- Stock Symbol
- Class Period
- October 28, 2021 to April 27, 2022
- Motion Deadline
- August 5, 2022
- Southern District of New York
The Teladoc class action lawsuit seeks to represent purchasers or acquirers of Teladoc Health, Inc. (NYSE: TDOC) securities between October 28, 2021 and April 27, 2022, inclusive (the “Class Period”). The Teladoc class action lawsuit – captioned Schneider v. Teladoc Health, Inc., No. 22-cv-04687 (S.D.N.Y.) – charges Teladoc and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Teladoc class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the Teladoc class action lawsuit must be filed with the court no later than August 5, 2022.
CASE ALLEGATIONS: Teladoc offers its customers various virtual products and services addressing, among other medical issues, mental health through its BetterHelp Direct-to-Consumer (“D2C”) product, and chronic conditions. Despite recent market concerns over new entrants to the telehealth field, such Amazon.com, Inc. and Walmart Inc., Teladoc has continued to assure investors of its dominant market position in the industry. In fact, as recently as February 2022, Teladoc forecasted full year fiscal year 2022 (“FY22”) revenue of $2.55 - $2.65 billion, as well as adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $330 - $355 million, on anticipated continued growth through its competitive advantages.
The Teladoc class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) increased competition, among other factors, was negatively impacting Teladoc’s BetterHelp and chronic care businesses (ii) accordingly, the growth of those businesses was less sustainable than defendants had led investors to believe; (iii) as a result, Teladoc’s revenue and adjusted EBITDA projections for FY22 were unrealistic; (iv) thus, Teladoc would be forced to recognize a significant non-cash goodwill impairment charge; and (v) consequently, Teladoc’s public statements were materially false and misleading at all relevant times.
On April 27, 2022, Teladoc announced its first quarter 2022 financial results, including revenue of $565.4 million, which missed consensus estimates by $3.23 million, 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, Teladoc revised its FY22 revenue guidance to $2.4-$2.5 billion and adjusted EBITDA guidance to $240 - $265 million “to reflect dynamics we are currently experiencing in the [D2C] mental health and chronic condition markets.” On a conference call with investors, defendants largely attributed Teladoc’s poor performance, revised FY22 guidance, and $6.6 billion non-cash goodwill impairment charge to increased competition in its BetterHelp and chronic care businesses. On this news, Teladoc’s stock price fell by more than 40%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Teladoc securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Teladoc class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Teladoc class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Teladoc class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.