NEW YORK, Dec. 30, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Teladoc Health, Inc. (“Teladoc” or the “Company”) (NYSE: TDOC) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and indexed under 18-cv-11603, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired Teladoc securities between March 3, 2016 and December 5, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Teladoc securities between March 3, 2016 and December 5, 2018, both dates inclusive, you have until February 11, 2019 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Teladoc was founded in 2002 and is headquartered in Purchase, New York. The Company provides telehealth services worldwide. The Company offers a portfolio of services and solutions covering 450 medical subspecialties, such as flu and upper respiratory infections, cancer, and congestive heart failure. The Company provides its services through mobile devices, the Internet, video, and phone. The Company serves health plans, health systems, and other entities.
Mark Hirschhorn (“Hirschhorn”) is Executive Vice President (“EVP”), Chief Operating Officer (“COO”), and Chief Financial Officer (“CFO”) of Teladoc. In those capacities, Hirschhorn is responsible for advancing the Company’s financial infrastructure and strategic direction and developing Teladoc’s industry-leading operations.
At all relevant times, the Company purported to be committed to “the highest standards of integrity and ethics in the way it conducts business,” and, to that end, adopted a Code of Business Conduct and Ethics, which applies to all of its employees, officers and directors, including its chief executive officer, chief financial officer, and all other executive and senior officers.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Hirschhorn was engaged in an inappropriate sexual relationship with a subordinate; (ii) Hirschhorn and this subordinate engaged in insider trading to provide themselves with undue benefits; (iii) Hirschhorn caused the subordinate to receive promotions for which she was unqualified, thereby negatively impacting the Company’s operations; (iv) the Company’s enforcement of its own purported employment and trading policies were inadequate to prevent the foregoing conduct; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On December 5, 2018, the Southern Investigative Research Foundation (“SIRF”) published an article reporting that Teladoc’s CFO, Hirschhorn, had engaged “in an affair with . . . an employee many levels below him on the company’s organizational chart.” The SIRF article stated that “during their relationship, [the employee] received a series of promotions over colleagues with either more industry experience or better credentials that stunned her former colleagues.” In addition, the SIRF article reported that the employee and Hirschhorn “liked to trade Teladoc Health’s stock together,” with Hirschhorn “tell[ing] her when he thought there were good opportunities to sell some shares.”
Following publication of the SIRF article, Teladoc’s stock price fell $4.00 per share, or 6.69%, to close at $55.81 per share on December 6, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
