LOS ANGELES, Feb. 14, 2022 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming March 8, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors of Talkspace, Inc. (“Talkspace” or the “Company”) (NASDAQ: TALK, TALKW) who: (a) purchased or otherwise acquired securities between June 11, 2020 and November 15, 2021, inclusive (the “Class Period”); and/or (b) held common stock as of the record date for the June 17, 2021 special meeting to consider approval of the merger between Hudson Executive Investment Corporation (“HEIC”) and Talkspace (the “Merger”) and entitled to vote on the Merger.
If you suffered a loss on your Talkspace investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/talkspace-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On May 28, 2021, Talkspace and HEIC issued a proxy statement soliciting votes in favor of the Merger. Following stockholder approval, the Merger was consummated on June 22, 2021.
On August 9, 2021, Talkspace announced its second quarter 2021 financial results, including “elevated customer acquisition cost, due mainly to a material increase in the cost of digital advertising.” On this news, the Company’s stock price fell $1.11, or 18.7%, to close at $4.82 per share on August 10, 2021.
Then, on November 15, 2021, Talkspace announced third quarter 2021 financial results that “came in below expectations management shared with investors on [its] last earnings call.” Also on November 15, 2021, the Company’s Chief Executive Officer, Oren Frank, and Head of Clinical Services, Roni Frank, resigned. On this news, the Company’s stock price fell $1.23, or 36%, to close at $2.16 per share on November 16, 2021.
By December 30, 2021, the price of Talkspace common stock was trading below $2 per share, 80% below the price shareholders would have received if they had redeemed their shares instead of approving the Merger less than one year earlier.
The complaint filed alleges that Defendants made materially misleading statements because they failed to disclose to investors that: (1) Talkspace was experiencing significantly increased online advertising costs in its business-to-consumer ("B2C") channel since the start of 2021; (2) Talkspace was experiencing lower conversion rates in its online advertising in its B2C business; (3) Talkspace was experiencing increased customer acquisition costs and more tepid B2C demand than represented to investors; (4) Talkspace was suffering from ballooning customer acquisition costs and worsening growth and gross margin trends; (5) 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 (6) as a result of the foregoing, Talkspace’s 2021 financial guidance was not achievable and lacked any reasonable basis in fact.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you purchased Talkspace securities during the Class Period and/or held Talkspace common stock as of the record date for the June 17, 2021 special meeting, you may move the Court no later than March 8, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
