NEW YORK, June 08, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of Teladoc Health, Inc. (:TDOC), Verrica Pharmaceuticals, Inc. (VRCA), and Apyx Medical Corporation (APYX). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.
Teladoc Health, Inc. (:TDOC)
Course period: October 28, 2021 – April 27, 2022
Lead Applicant Deadline: August 5, 2022
Teladoc provides virtual healthcare services in the United States 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 diseases.
Teladoc bills itself as “the first and only company to provide a comprehensive, integrated whole-person virtual healthcare solution that both delivers and enables care for a full spectrum of clinical conditions.[.]“Despite recent market concerns about new entrants in telehealth, such as Amazon.com, Inc. (“Amazon”) and Walmart Inc. (“Walmart”), the Company has continued to provide investors the dominant position of the Company on the industry market.
In fact, as recently as February 2022, Teladoc forecast 2022 full year (“FY”) revenue of $2.55 billion to $2.65 billion, along with adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $330 to $355 million. , on the pursuit of anticipated growth thanks to its competitive advantages.
Throughout the Class Period, the Defendants have 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 BetterHelp and Teladoc’s chronic care businesses; (ii) as a result, the growth of these companies was less sustainable than the defendants had led investors to believe; (iii) as a result, Teladoc’s fiscal 2022 revenue and Adjusted EBITDA projections were unrealistic; (iv) as a result of all of the foregoing, Teladoc would be required 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 material 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]and loss per share of $41.58, mainly attributable to [a] non-cash goodwill impairment charge of $6.6 billion or $41.11 per share[.]”In addition, the company has revised its fiscal 2022 revenue guidance to $2.4 – $2.5 billion and its adjusted EBITDA guidance to $240 – $265 million” to reflect the momentum we are experiencing. currently in the [D2C] mental health and chronic disease markets. In a conference call with investors and analysts that day to discuss Teladoc’s first quarter 2022 results, defendants largely attributed the company’s poor performance, revised guidance for fiscal year 2022 and a charge. non-cash goodwill impairment of $6.6 billion 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.
For more information on the Teladoc class action, please visit: https://bespc.com/cases/TDOC
Verrica Pharmaceuticals, Inc. (VRCA)
Course period: May 28, 2021 – May 24, 2022
Lead Applicant Deadline: August 5, 2022
In December 2020, Verrica submitted its New Drug Application (“NDA”) to the U.S. Food and Drug Administration (“FDA”) seeking regulatory approval of VP-102 for the treatment of molluscum .
On September 20, 2021, after market close, Verrica announced the receipt of a Complete Response Letter (“CRL”) due to deficiencies in a Verrica contract manufacturer facility under the company’s NDA .
Following this news, the company’s share price fell $1.00, or 8.3%, to close at $11.03 per share on September 21, 2021, on unusually high trading volume. raised.
In November 2021, Verrica resubmitted the NDA for VP-102, claiming “[t]The new submission addresses the successful resolution of inspection deficiencies” at the manufacturing plant.
Then, on May 24, 2022, after market close, Verrica announced receipt of another comprehensive response letter regarding NDA VP-102 citing “deficiencies identified during a general re-inspection of Sterling Pharmaceuticals Services, LLC ( Sterling), the contract manufacturing organization (CMO) that manufactures Verrica’s bulk solution drug.”
Following the news, shares of the company fell $3.55, or 63.8%, to close at $2.01 per share on May 25, 2022, on unusually high trading volume.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, defendants failed to disclose to investors: (1) that there were manufacturing defects in the facility where Verrica’s contract manufacturer produced bulk solution for VP-102; (2) that these deficiencies were not corrected when Verrica resubmitted its NDA for VP-102 for molluscum; (3) that the foregoing posed significant risks to Verrica obtaining regulatory approval for VP-102 for molluscum; and (4) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
For more information on the Verrica class action, please visit: https://bespc.com/cases/VRCA
Apyx Medical Corporation (APYX)
Course period: May 12, 2021 – March 11, 2022
Lead Applicant Deadline: August 5, 2022
On March 14, 2022, Apyx announced that the United States Food and Drug Administration (“FDA”) would issue a Medical Device Safety Notice (“MDSC”) regarding the company’s advanced energy products. The Company further revealed that “[b]Based on our initial interactions with the FDA, we believe the Agency’s MDSC will relate to the use of our Advanced Energy products outside of their FDA-approved indication for general use in cutting, coagulation, and soft tissue removal during open and laparoscopic surgical procedures. .”
On this news, shares of the company fell $4.02, or 40.6%, to close at $5.88 per share on March 14, 2022, on unusually high trading volume.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) that a significant number of Apyx’s Advanced Energy products were used for non-compliant indications; (2) that these off-label uses have resulted in an increase in the number of medical device reports filed by Apyx of serious adverse events; (3) that, as a result, the Company was reasonably likely to be subject to regulatory scrutiny; (4) that as a result of the foregoing, the Company’s financial results would be adversely affected; and (5) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
For more information on the Apyx class action, please visit: https://bespc.com/cases/APYX
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC 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, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.
Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Melissa Fortunato, Esq.