Teladoc Faces Derivative Suit Over Ex-Executive’s Office Affair

Teladoc Health Inc.'s leadership allegedly failed to warn investors about a former executive’s relationship with a low-level employee, a June 21 suit says.

The telehealth firm’s directors and officers should have told investors about ex-chief financial officer Mark Hirschhorn’s promotion of the allegedly unqualified subordinate he was having a romantic relationship with, the shareholder derivative complaint filed in the U.S. District Court for the Southern District of New York says.

“We find the claims to be misleading and are confident that the matter will be resolved favorably,” a Teladoc spokesperson said June 24. The company’s “board of directors took swift ...