Teladoc Misrepresented Unit’s Marketing Costs, Investor Says (1)

Teladoc Health Inc. projected lower advertising costs for its BetterHealth online counseling services, keeping stock prices inflated before a disappointing revenue report, an investor alleges in a proposed class action.

The Feb. 20 Form 10-K report caused the company’s stock price to fall 24% overnight, shareholder Paul Stary says in his complaint, filed May 17 in the US District Court for the Southern District of New York.

Teladoc’s Form 10-K “demonstrated substantially increased advertising costs,” Stary says. “In 2023, advertising and marketing spend was $668,854,000, up from $623,536,000 in 2022—itself an increase from $416,726,000 in 2021.” The report attributed the ...