According to the Complaint, Teladoc Health, Inc. provides online, direct-to-consumer health service services. One such service is BetterHelp, an online mental health counseling service.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that: (a) the Company continued to expand its marketing spend throughout 2023, despite public assurances of that it would pull back its advertising spending; (b) increased marketing spend on BetterHelp deteriorated the Company’s revenue, with little return for that investment; (c) despite the Company’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; (d) 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.