WILMINGTON, Del., Jan. 12, 2022 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced today that a securities fraud class action lawsuit has been filed in the U.S. District Court, Southern District of New York, Case No. 22-cv-00163, on behalf of investors of Talkspace, Inc. (NASDAQGS: TALK) (“Talkspace” or the “Company”) that had purchased Talkspace shares as of June 17, 2021. If you held Talkspace shares as of June 17, 2021, you may, no later than March 8, 2022, request that the Court appoint you lead plaintiff of the proposed class.
A copy of the complaint is available from Andrews & Springer LLC or the Court. If you would like to join the class action, please visit our website or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – https://www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
On January 7, 2022, a Talkspace shareholder filed a securities fraud class action lawsuit against the Company. According to the complaint, on January 13, 2021, Talkspace’s predecessor HEIC, announced that it had entered into a merger agreement with Talkspace (the “Merger”). The complaint alleges that, in an attempt to secure shareholder support for the Merger, on May 28, 2021, defendants issued a materially false and misleading Preliminary Proxy on Schedule 14A (the "Proxy"). The Proxy, which recommended that HEIC shareholders vote in favor of the Merger, misrepresented Talkspace's business, financials, and prospects, by omitting, among other things, that: (1) Talkspace was experiencing significantly increased online advertising costs in its business-to-consumer ("B2C") channel since the start of 2021; (2) Talkspace was experiencing lower conversion rates in its online advertising in its B2C business; (3) Talkspace was experiencing increased customer acquisition costs and more tepid B2C demand than represented to investors; (4) Talkspace was suffering from ballooning customer acquisition costs and worsening growth and gross margin trends; (5) Talkspace had overvalued its accounts receivables from certain of its health plan clients in its business-to-business channel, which amounts required adjustment downward; and (6) as a result of the foregoing, Talkspace's 2021 financial guidance was not achievable and lacked any reasonable basis in fact.
As a result of this adverse news, the Company's share price has dropped significantly since the closing of the Merger losing more than 80% of its value and caused shareholders to incur millions in losses.
If you wish to serve as lead plaintiff, you must move the Court no later than March 8, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.
| Contact: | Craig J. Springer, Esq. cspringer@andrewsspringer.com Toll Free: 1-800-423-6013 |
