Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Teladoc Health, Inc. (TDOC)

New York, New York, UNITED STATES


NEW YORK, June 07, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston 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 investors who purchased Teladoc stock between October 28, 2021 and April 27, 2022, inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and misleading statements and failed to disclose 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 FY22 were unrealistic; (4) thus, Teladoc would be forced to recognize a significant non-cash goodwill impairment charge; and (5) 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.

Investors who purchased or otherwise acquired shares of Teladoc should contact the Firm prior to the August 5, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.