According to the Complaint, Teladoc Health, Inc. ("Teladoc" or 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.
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) Teladoc's CFO was engaged in an inappropriate sexual relationship with a subordinate; (ii) the CFO and this subordinate engaged in insider trading to provide themselves with undue benefits; (iii) the CFO 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 March 7, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended consolidated Complaint on May 20. On June 25, Lead Plaintiff filed a second amended consolidated Complaint. Defendants filed a Motion to Dismiss the second amended consolidated Complaint on September 13. On November 30, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint. On December 30, Lead Plaintiff filed a third amended consolidated Complaint.