TELADOC ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Teladoc Health, Inc. and Encourages Investors to Contact the Firm

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Teladoc Health, Inc. (“Teladoc” or the “Company”) (NYSE: TDOC) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired Teladoc securities between October 28, 2021 and April 27, 2022, both dates inclusive (the “Class Period”). Investors have until August 5, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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Teladoc provides virtual healthcare services in the U.S. and internationally through Business-to-Business (“B2B”) and Direct-to-Consumer (“D2C”) distribution channels. The Company offers its customers various virtual products and services addressing, among other medical issues, mental health through its BetterHelp D2C product, and chronic conditions.

Teladoc touts itself as “the first and only company to provide a comprehensive and integrated whole person virtual healthcare solution that both provides and enables care for a full spectrum of clinical conditions[.]” Despite recent market concerns over new entrants to the telehealth field, such Amazon.com, Inc. (“Amazon”) and Walmart Inc. (“Walmart”), the Company has continued to assure investors of the Company’s dominant market position in the industry.

In fact, as recently as February 2022, Teladoc forecasted full year (“FY”) 2022 revenue of $2.55 - $2.65 billion, as well as adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $330 - $355 million, on anticipated continued growth through its competitive advantages.

Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) increased competition, among other factors, was negatively impacting Teladoc’s BetterHelp and chronic care businesses; (ii) accordingly, the growth of those businesses was less sustainable than Defendants had led investors to believe; (iii) as a result, Teladoc’s revenue and adjusted EBITDA projections for FY 2022 were unrealistic; (iv) as a result of all the foregoing, Teladoc would be forced to recognize a significant non-cash goodwill impairment charge; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On April 27, 2022, Teladoc announced its first quarter (“Q1”) 2022 financial results, including revenue of $565.4 million, which missed consensus estimates by $3.23 million, and “[n]et loss per share of $41.58, primarily driven by [a] non-cash goodwill impairment charge of $6.6 billion or $41.11 per share[.]” Additionally, the Company revised its FY 2022 revenue guidance to $2.4 - $2.5 billion and adjusted EBITDA guidance to $240 - $265 million “to reflect dynamics we are currently experiencing in the [D2C] mental health and chronic condition markets.” On a conference call with investors and analysts that day to discuss Teladoc’s Q1 2022 results, Defendants largely attributed the Company’s poor performance, revised FY 2022 guidance, and $6.6 billion non-cash goodwill impairment charge to increased competition in its BetterHelp and chronic care businesses.

On this news, Teladoc’s stock price fell $22.48 per share, or 40.15%, to close at $33.51 per share on April 28, 2022.

If you purchased or otherwise acquired Teladoc shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

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