Teladoc is facing a class-action lawsuit alleging the virtual care company knowingly and willfully misled investors regarding its business, operations and future prospects, resulting in “significant losses and damages” for stakeholders, Healthcare Dive reports.
The suit was filed in a New York district court on behalf of parties that purchased Teladoc shares between October and April. It accuses Teladoc, along with CEO Jason Gorevic and CFO Mala Murphy, of downplaying competition in the sector that stifled growth for mental health and chronic care businesses, along with issuing “unrealistic” financial expectations for 2022.
“The Company’s public statements were materially false and misleading at all relevant times,” the lawsuit, which requests a trial by jury, alleges. “As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.” Read more.
