A New York district judge dismissed a class-action lawsuit against virtual care company Teladoc alleging that the company misled investors regarding its business operations, resulting in losses and damages for stakeholders.
A group of investors led by shareholder Jeremy Schneider sued Teladoc in June 2022 for failing to disclose challenges including increased competition in the virtual care sector and its struggling financial performance resulting from its $18.5 billion acquisition of Livongo in October 2020. Teladoc recorded a more than $13 billion non-cash goodwill impairment charge last year due to the acquisition, Healthcare Dive reports.
Judge Denise Cote of the Southern District of New York ruled that Teladoc had detailed risks of the potential acquisition and that, while the company may have expressed “optimism” regarding its standing against competitors, the company did not falsify facts or statements, adding that “expressions of optimism are not generally actionable.” Read more.
