TDOC - Bragar Eagel & Squire P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Teladoc Direct Digital Cambium and Enphase and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, June 30, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Teladoc Health, Inc. (NYSE:TDOC), Direct Digital Holdings, Inc. (NASDAQ:DRCT), Cambium Networks Corporation (NASDAQ:CMBM), and Enphase Energy, Inc. (NASDAQ:ENPH). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Teladoc Health, Inc. (NYSE:TDOC)
Class Period: November 2, 2022 - February 20, 2024
Lead Plaintiff Deadline: July 16, 2024
Teladoc provides online, direct-to-consumer health service services. BetterHelp is Teladoc's largest division and contributes the Company's greatest revenue share, contributing about 42% of overall revenue.
The Teladoc class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Teladoc continued to expand its marketing spend throughout 2023, despite public assurances that it would pull back its advertising spending; (ii) increased marketing spend on BetterHelp deteriorated Teladoc's revenue, with little return for that investment; (iii) despite Teladoc's acknowledgment that increased advertising spend would be marginally inefficient due to market saturation, it continued to grow its advertising spend in the BetterHelp business; and (iv) despite public statements that there remained "a long runway" for BetterHelp membership growth, BetterHelp's membership stagnated and then decreased in 2023, due to market saturation, largely due to BetterHelp's own marketing.
The Teladoc class action lawsuit further alleges that on February 20, 2024, Teladoc released its fourth quarter of 2023 earnings report on Form 10-K, which demonstrated substantially increased advertising costs "substantially driven by higher digital and media advertising costs related to BetterHelp." Teladoc also revealed that BetterHelp revenue fell $1 million compared to the year prior and fell about $10 million from the third to the fourth quarter of 2023; that BetterHelp lost members for two consecutive quarters, despite that increased advertising spend; and that Teladoc's revenue was flat compared to the prior year and down 3% sequentially – well below expectation, according to the complaint. On this news, the price of Teladoc's shares fell by more than 23%, according to the Teladoc class action lawsuit.
For more information on the Teladoc class action go to: https://bespc.com/cases/TDOC
Direct Digital Holdings, Inc. (NASDAQ:DRCT)
Class Period: April 17, 2023 - March 25, ...