Online Therapy Firm Talkspace Misled SPAC Investors, Suit Says (1)

Online therapy provider Talkspace Inc. failed to disclose user growth headwinds and higher advertising costs in the lead up to its $1.4 billion merger with a blank check company last year, a new shareholder suit said.

Executives and directors at Talkspace and Hudson Executive Investment Corp., the special purpose acquisition company (SPAC) that took Talkspace public in June 2021, failed to tell investors about “worsening growth” and other negative developments in the early months of 2021, according to the complaint filed Jan. 7 in the U.S. District Court for the Southern District of New York.

Talkspace provides licensed therapists, psychologists ...