SAN DIEGO–(BUSINESS WIRE)–The class: Law firm in shareholder law Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all persons or entities who purchased or otherwise acquired securities of Teladoc Health, Inc. (NYSE: TDOC) between October 28, 2021 and April 27, 2022, for violation of the Securities Exchange Act of 1934. Teladoc provides virtual healthcare services in the United States and around the world through business-to-business and direct-to-consumer distribution channels.
If you would like more information about Teladoc Health, Inc.’s misconduct, click here.
What this case is about: Teladoc Health, Inc. misses first quarter financial estimates due to $6.6 billion non-cash impairment charge from increased competition
According to the Complaint, during the Class Period, the Defendants marketed themselves as “the first and only company to provide a comprehensive, integrated, whole-person virtual healthcare solution that provides and enables care for a range of full of clinical conditions[.]“As of February 2022, Teladoc forecast full year 2022 revenue of $2.55 billion to $2.65 billion and adjusted EBITDA of $330 billion to $355 billion, on expected continued growth. thanks to its competitive advantages.
However, despite these projections, Defendants have failed to disclose that increased competition, among other factors, is negatively impacting BetterHelp and Teladoc’s chronic care businesses, and that the growth of these businesses is less sustainable than expected. the defendants had led the investors to believe. As a result, Teladoc’s full-year 2022 revenue and adjusted EBITDA projections were unrealistic.
On April 27, 2022, Teladoc announced its first quarter 2022 financial results, including revenue of $565.4 million, which missed consensus estimates by $3.23 million and “[n]and loss per share of $41.48, mainly attributable to [a] non-cash goodwill impairment charge of $6.6 billion or $4.11 per share[.]Additionally, the company has revised its full-year 2022 revenue guidance to $2.4-2.5 billion and adjusted EBITDA guidance to $240-265 million” to reflect the dynamic that we are currently experiencing in the [D2C] mental health and chronic disease markets. At this news, Teladoc’s stock price fell $22.48 per share, or more than 40%, to close at $33.51 per share on April 28, 2022.
Next steps: If you acquired shares of Teladoc Health, Inc. securities between October 28, 2021 and April 27, 2022, you have until August 5, 2022, to ask the court to name you as the lead plaintiff in the class. A lead plaintiff is a representative party acting on behalf of the other class members to direct the litigation. You don’t have to be in the case to be eligible for a clawback.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
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