NEW YORK, May 21, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Teladoc Health, Inc. (“Teladoc” or the “Company”) (NYSE: TDOC) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Teladoc securities between November 2, 2022 and February 20, 2024, both dates inclusive (the “Class Period”). Investors have until July 16, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Teladoc provides online, direct-to-consumer health service services. BetterHelp is Teladoc’s largest division and contributes the Company’s greatest revenue share, contributing about 42% of overall revenue.
The Teladoc class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Teladoc continued to expand its marketing spend throughout 2023, despite public assurances that it would pull back its advertising spending; (ii) increased marketing spend on BetterHelp deteriorated Teladoc’s revenue, with little return for that investment; (iii) despite Teladoc’s acknowledgment that increased advertising spend would be marginally inefficient due to market saturation, it continued to grow its advertising spend in the BetterHelp business; and (iv) despite public statements that there remained “a long runway” for BetterHelp membership growth, BetterHelp’s membership stagnated and then decreased in 2023, due to market saturation, largely due to BetterHelp’s own marketing.
The Teladoc class action lawsuit further alleges that on February 20, 2024, Teladoc released its fourth quarter of 2023 earnings report on Form 10-K, which demonstrated substantially increased advertising costs “substantially driven by higher digital and media advertising costs related to BetterHelp.” Teladoc also revealed that BetterHelp revenue fell $1 million compared to the year prior and fell about $10 million from the third to the fourth quarter of 2023; that BetterHelp lost members for two consecutive quarters, despite that increased advertising spend; and that Teladoc’s revenue was flat compared to the prior year and down 3% sequentially – well below expectation, according to the complaint. On this news, the price of Teladoc’s shares fell by more than 23%, according to the Teladoc class action lawsuit.
If you purchased or otherwise acquired Teladoc shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
