Teladok Health The virtual care company is facing a class action lawsuit for misleading investors about its business and financial prospects.
The lawsuit, filed yesterday in the Southern District of New York on behalf of defendants who bought Teladok shares between October and April, names the company as well as CEO Jason Gorevic and CFO Mala. Idols.
It alleges that they made misleading statements or failed to disclose that increased competition in space was affecting Teladoc’s BetterHelp mental health department and its long-term care business and that their growth was not sustainable.
“Despite recent market concerns about new entrants to the telehealth sector, such as Amazon.com, Inc. and Walmart Inc., the company continues to reassure investors about the company’s dominant market position in the industry,” the lawsuit states.
As a result, Class Action alleges that Teladok’s revenue and interest, tax, depreciation and payment forecasts for FY 2022 were unrealistic and that the company would have to pay সম্পর্কিত 6.6 billion in cash discretionary charges related to it. 2020 Livongo acquisition.
“As a result of the unjust actions and exclusions of the defendants and the sharp fall in the market value of the company’s securities, the plaintiffs and members of other classes have suffered significant losses and damages,” the lawsuit said.
In late April, Teladok posted Disappointing first-quarter results, reported a 6.7 billion loss. The company said the loss, a significant leap compared to the estimated $ 200 million loss from Q1 last year, was driven by cash greeting impediment charges.
Teladoc revised its guidelines for the year, expecting revenue of $ 2.4 billion to $ 2.5 billion, while the consistent EBITDA was revised to between 0 240 million and $ 265 million.
“We hold a high standard for ourselves, and there is no question that we are disappointed with our revised outlook today,” Gorevic said during an earnings call. “However, as I mentioned earlier, we are extremely confident that our full-person, integrated approach is correct.”
Digital health companies have recently struggled in the public market, although the decline is particularly severe for more new public companies and those who have merged with a special purpose acquisition company. According to a report from Rock Health.
The teletherapy company TalkSpace was in January It has hit out at a class action lawsuit alleging that SPAC has misled investors in the race for consolidation, which has taken it publicly. The company reported a net loss of $ 20 million in Q1 as the focus shifted to the B2B model.
On the record
“Unfortunately, such lawsuits have become commonplace for public companies. There is no real basis for lawsuits, but we cannot comment further on pending lawsuits,” said a Teladok health spokesman. MobiHealthNews.