WILMINGTON, Delaware, Jan. 12, 2022 (GLOBE NEWSWIRE) – Andrews & Springer LLC, a securities class action law firm focused on national shareholder representation, today announced that a class action lawsuit for securities fraud had been filed in the United States District Court, Southern District of New York, Case No. 22-cv-00163, on behalf of the investors of Talkspace, Inc. (NASDAQGS: TALK) (“Talkspace” or the “Company”) who had purchased shares of Talkspace as of June 17, 2021. If you held shares of Talkspace as of June 17, 2021, you may, no later than March 8, 2022, request that the Court appoint you as the plaintiff principal of the proposed group.
A copy of the complaint is available from Andrews & Springer LLC or the Court. If you would like to join the class action, please visit our website or contact Craig J. Springer, Esq. at [email protected], or call toll free at 1-800-423-6013. You can also follow us on LinkedIn – https://www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook – www.facebook.com/AndrewsSpringer for future updates.
NO GROUP HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY A LAWYER UNLESS YOU REMEMBER ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN ANY LAWYER OF YOUR CHOICE.
On January 7, 2022, a shareholder of Talkspace filed a securities fraud class action against the Company. According to the complaint, on January 13, 2021, Talkspace’s predecessor, HEIC, announced that it had entered into a merger agreement with Talkspace (the “Merger”). The complaint alleges that, in an effort to gain shareholder support for the merger, on May 28, 2021, the defendants issued a substantially false and misleading preliminary proxy on Schedule 14A (the “Procure”). The proxy, which recommended that HEIC shareholders vote in favor of the merger, distorted Talkspace’s business, financial data and outlook, failing, among other things, that: (1) Talkspace was experiencing a significant increase in the costs of online advertising in its mainstream (“B2C”) channel activities since early 2021; (2) Talkspace experienced lower conversion rates in its online advertising in its B2C business; (3) Talkspace was experiencing increased customer acquisition costs and lukewarm B2C demand than that represented for investors; (4) Talkspace suffered from increased customer acquisition costs and deteriorating growth and gross margin trends; (5) Talkspace had overstated its accounts receivable from some of its health insurance clients in its business-to-business channel, the amounts of which required a downward adjustment; and (6) Due to the above, Talkspace’s financial forecast for 2021 was not achievable and lacked a reasonable basis in fact.
As a result of this bad news, the Company’s share price has fallen significantly since the closing of the Merger, losing more than 80% of its value and causing millions in losses to shareholders.
If you wish to act as the principal plaintiff, you must apply to the Court no later than March 8, 2022. A principal plaintiff is a representative party acting on behalf of the other members of the group to direct the litigation. If you would like to join the litigation or discuss your rights or interests in relation to this class action lawsuit, please contact Craig J. Springer, Esq. at [email protected], or call toll free at 1-800-423-6013. You can also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook – www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a securities class action law firm that represents shareholders nationwide who are victims of securities fraud, breach of fiduciary duty or corporate misconduct. Having once championed some of the world’s largest financial institutions, our founding members use their invaluable knowledge, experience and superior skills with the sole purpose of delivering positive results for investors. These characteristics are the hallmarks of our innovative approach for each case that our firm decides to pursue. For more information, please visit our website at www.andrewsspringer.com. This notice may constitute a lawyer advertisement.