Teladoc Health, Inc.

  • Active

Investigation
04/28/2022

Initial Lawsuit
06/06/2022

Lawsuit Progression
08/05/2022

Investigation

  • Continous Holding
    October 28, 2021 to April 27, 2022
  • Proposed Claim
    Securities Violation

Did Teladoc mislead investors about its position, competitiveness and growing competitors’ impact on the company’s business? On April 27, 2022, the company revealed a $6.6 billion non-cash goodwill impairment charge along with a yearly outlook update (downgrade), citing direct-to-consumer (D2C) mental health and chronic condition markets dynamics.

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.

Main Event

Q1 2022

04/27/2022

SEC Filing

Teladoc reveals its Q1 2022 financial results with a net loss per share of $41.58 “primarily driven by non-cash goodwill impairment charge of $6.6 billion or $41.11 per share” and reduced the outlook for the year.

Jason Gorevic, chief executive officer of Teladoc Health said: “While we continue to see sustainable growth across our suite of products and services, we are revising our 2022 outlook to reflect dynamics we are currently experiencing in the direct-to-consumer (D2C) mental health and chronic condition markets. In the D2C mental health market, higher advertising costs in some channels are generating a lower-than-expected yield on our marketing spend. In the chronic condition market, we are seeing an elongated sales cycle as employers and health plans evaluate their long-term strategies to deliver the benefits and care that their populations need. Despite the revision to our 2022 outlook, we are confident in our strategy, along with our breadth and depth of capabilities, which empower people everywhere to live healthier lives […]”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$33.51 $55.99 $-22.48 -40.15%
See more on Factual Timeline

Initial Lawsuit

A shareholder filed this federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired Teladoc securities between October 28, 2021, and April 27, 2022, both dates inclusive.

  • Filing Date
    06/06/2022
  • Class Period
    10/28/2021 to 04/27/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Pomerantz LLP
  • Case Title
    Schneider v. Teladoc Health, Inc. et al
  • Docket Number
    1:22-cv-04687
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

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 that:

(i) increased competition, among other factors, was negatively impacting Teladoc’s BetterHelp and chronic care businesses;
(ii) accordingly, the growth of those businesses was less sustainable than defendants had led investors to believe;
(iii) as a result, Teladoc’s revenue and adjusted EBITDA projections for FY2022 were unrealistic;
(iv) as a result of all the foregoing, Teladoc would be forced to recognize a significant non-cash goodwill impairment charge; and
(v) as a result, the company’s public statements were materially false and misleading at all relevant times.

Defendants

  • Company
    Teladoc
  • Chief Executive Officer
    Jason Gorevic
  • Chief Financial Officer
    Mala Murthy

Lawsuit progression

  • Docket Number
    1:22-cv-04687
  • Court
    New York Southern District Court

The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses

[stockdio-historical-chart symbol=”TDOC” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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