Teladoc is facing a potential class action lawsuit from investors who claim the company made false statements about its marketing spending on mental health offering BetterHelp. The lawsuit alleges that Teladoc’s increased marketing spend on BetterHelp led to decreased revenue and stock price. The company’s former CEO resigned after poor financial performance. The lawsuit also claims Teladoc misrepresented BetterHelp’s membership growth potential. Previously, BetterHelp faced FTC fines for allegedly sharing consumer data with third parties. Another lawsuit related to Teladoc’s merger with Livongo was dismissed. Teladoc stated it will vigorously defend itself against the allegations.
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Teladoc may face a second class action lawsuit by investors
