An investigation on behalf of investors in Talkspace, Inc. (NASDAQ:TALK) shares over potential wrongdoing at Talkspace, Inc. was announced.
San Diego, CA -- (SBWIRE) -- 04/19/2022 -- Certain directors of Talkspace, Inc. are under investigation over potential breaches of fiduciary duties.
Investors who purchased shares of Talkspace, Inc. (NASDAQ: TALK) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain Talkspace, Inc. directors breached their fiduciary duties and caused damage to the company and its shareholders.
On January 7, 2022, a lawsuit was filed against Talkspace, Inc. over alleged securities laws violations. According to the complaint the plaintiff alleges that, in an attempt to secure shareholder support for the Merger, on May 28, 2021, defendants issued a materially false and misleading Preliminary Proxy on Schedule 14A (the "Proxy"). The plaintiff alleges that the Proxy, which recommended that Hudson Executive Investment Corporation shareholders vote in favor of the Merger, misrepresented Talkspace's business, financials, and prospects, by omitting, among other things, that Talkspace was experiencing significantly increased online advertising costs in its business-to-consumer ("B2C") channel since the start of 2021, that Talkspace was experiencing lower conversion rates in its online advertising in its B2C business, that Talkspace was experiencing increased customer acquisition costs and more tepid B2C demand than represented to investors, that Talkspace was suffering from ballooning customer acquisition costs and worsening growth and gross margin trends, that Talkspace had overvalued its accounts receivables from certain of its health plan clients in its business-to-business channel, which amounts required adjustment downward, and that as a result of the foregoing, Talkspace's 2021 financial guidance was not achievable and lacked any reasonable basis in fact.
The plaintiff alleges that after the Merger closed the Proxy was revealed to be materially false and misleading, causing the price of Talkspace common stock to substantially decline and Talkspace investors to suffer damages under the Exchange Act.
Those who purchased shares of Talkspace, Inc. (NASDAQ: TALK) have certain options and should contact the Shareholders Foundation.
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