(MENAFN- GlobeNewsWire - Nasdaq) SAN DIEGO, May 30, 2024 (GLOBE NEWSWIRE) -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of shares of Teladoc Health, Inc. (NYSE: TDOC) stock between November 2, 2022 and February 20, 2024, inclusive (the“Class Period”), have until July 16, 2024 to seek appointment as lead plaintiff of the Teladoc class action lawsuit. Captioned Stary v. Teladoc Health, Inc., No. 24-cv-03849 (S.D.N.Y.), the Teladoc class action lawsuit charges Teladoc as well as certain of Teladoc's top current and former executives 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 here:
You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at ... . Lead plaintiff motions for the Teladoc class action lawsuit must be filed with the court no later than July 16, 2024.
CASE ALLEGATIONS: 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.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Teladoc stock during the Class Period to seek appointment as lead plaintiff in the Teladoc class action lawsuit. 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 : Robbins Geller Rudman & Dowd LLP is one of the world's leading complex class action firms representing plaintiffs in securities fraud cases. The Firm was ranked #1 on the ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller topped the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs' firm. With 200 lawyers in 10 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. Please visit the following page for more information:
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Contact:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900, San Diego, CA 92101
800-449-4900
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