NEW YORK, June 03, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Teladoc Health, Inc. (“Teladoc” or the “Company”) (NYSE: TDOC) securities during the period of November 2, 2022 through February 20, 2024, inclusive (“the Class Period”). Investors have until July 16, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On February 20, 2024, Teladoc announced its fourth quarter 2024 and full year 2023 results on its Form 10-K and quarterly earnings call. The announcement disclosed that Teladoc had experienced substantially less growth than previously forecasted. The Company also disclosed that it was expecting decreased revenue for its BetterHelp segment, an online counseling service, despite reporting a substantial increase in advertising and marketing costs. Specifically, Teladoc revealed that BetterHelp lost members for two consecutive quarters and that BetterHelp revenue fell $1 million compared to the year prior and fell about $10 million from the third quarter of 2023 to the fourth quarter of 2023. On the earnings call, the CEO of Teladoc stated the Company’s revenue was flat compared to the prior year and down 3% sequentially – well below expectations. Analysts attributed this trend to BetterHelps market saturation and increased advertising costs causing a rise in the cost of customer acquisitions.
On this news, the price of Teladoc shares declined by $4.85 per share, or approximately 23.7%, from $20.49 per share on February 20, 2024 to close at $15.64 on February 21, 2024.
The lawsuit alleges that Teladoc made false and/or materially misleading statements regarding the operations, prospects, and growth of BetterHelp. Specifically, (1) Teladoc continued to expand its marketing spend throughout 2023, despite public assurances that it would pull back its advertising spend; (2) increased marketing spend on BetterHelp deteriorated the Company’s revenue, with little return for that investment; and (3) despite the Company’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.
If you purchased or otherwise acquired Teladoc securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
