Teladoc is facing a lawsuit alleging the company misled investors regarding its business, operations and future prospects that will result in "significant losses and damages" for stakeholders.
The lawsuit, filed June 6 on the behalf of parties that purchased Teladoc shares between October and April, accuses the company, along with CEO Jason Gorevic and CFO Mala Murthy, of downplaying competition in the mental health and chronic care business sectors, along with issuing "unrealistic" financial expectations for 2022.
The lawsuit also highlights Teladoc's first-quarter 2022 earnings report, in which the company reported a total net loss of $6.6 billion as well as a "non-cash goodwill impairment" charge of $6.6 billion.
As a result, the plaintiff alleges that stakeholders are now suffering "significant losses and damages" and asks that Teladoc be required to pay damages sustained by the plaintiffs.
In a statement to Becker's, a Teladoc spokesperson said that there "is no factual basis to the suit whatsoever," and that "lawsuits like this one have become commonplace for public companies."