
Inari Medical, Inc. (NARI)
Whether directors and officers of Inari Medical, Inc. (NARI) breached their fiduciary duties to the company and its shareholders.
Investigation
06/17/2021
Initial Lawsuit
01/07/2022
Lawsuit Progression
06/03/2022
Did Talkspace mislead investors in connection with its going public transaction with Hudson Executive Investment Corp.? Did the company issue misleading statements about its conversion rates, customer acquisition costs and accounts receivables?
This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.
A lawsuit was subsequently filed. We will update this post as it unfolds.
08/09/2021
Talkspace releases its first quarter financials as a public company. During a conference call to discussing the numbers, executives revealed some of the issues relating to increased customer acquisition costs (also referred to as “CAC”) due to rising digital advertising costs.
“While our B2C revenue grew substantially, we and many of our peers are experiencing elevated customer acquisition cost, due mainly to a material increase in the cost of digital advertising. As a result of this environment, we’re taking a number of steps which we believe further strengthens our business: First, we increased our advertising budget, which . . . we believe will ultimately increase members retention, engagement and satisfaction.”
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$4.82 | $5.93 | $-1.11 | -18.72% |
A Talkspace shareholder filed a securities class action lawsuit against Talkspace on behalf of all holders of Talkspace common stock (as of the record date for the special meeting of shareholders held on June 17, 2021) to consider approval of the merger between Hudson Executive Investment Corporation and Talkspace, and entitled to vote on the merger.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(a) that Talkspace was experiencing significantly increased online advertising costs in its B2C business since the beginning of 2021;
(b) that Talkspace was experiencing lower conversion rates in its online advertising in its B2C business;
(c) that, as a result of (a) and (b) above, Talkspace was experiencing increased customer acquisition costs and more tepid B2C demand than represented to investors;
(d) that, as a result of (a)-(c) above, Talkspace was suffering from ballooning customer acquisition costs and worsening growth and gross margin trends;
(e) that Talkspace had overvalued its accounts receivables from certain of its health plan clients in its B2B business, which amounts required adjusted downward; and
(f) that, as a result of (a)-(e) above, Talkspace’s 2021 financial guidance was not achievable and lacked any reasonable basis in fact.
06/03/2022
The court issued an order appointing the lead plaintiff and lead counsel.
Whether directors and officers of Inari Medical, Inc. (NARI) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of Payoneer Global Inc. (PAYO) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of Kewaunee Scientific Corporation (KEQU) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of Amicus Therapeutics, Inc. (FOLD) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of Builders FirstSource, Inc. (BLDR) breached their fiduciary duties to the company and its shareholders.