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SAN FRANCISCO, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Talkspace, Inc. (NASDAQ: TALK, HEC, HECCU, HECCW) investors of record on May 19, 2021 with significant losses and who were entitled to vote on June 17, 2021 regarding the proposed merger between Talkspace with special purpose acquisition company (“SPAC”) Hudson Executive Investment Corporation (“HEIC”) to submit your losses now .
Class: TALK, HEC, HECCU, HECCW Holders of Record on May 19, 2021
Lead Plaintiff Deadline: Mar. 8, 2022
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Talkspace, Inc. (TALK) Securities Class Action:
The complaint alleges that Talkspace, HEIC and certain of its top executives and Board members made false and misleading statements in their proxy statement to induce shareholders to vote in favor of the SPAC merger.
Specifically, Defendants mispresented and concealed that Talkspace was experiencing: (1) significantly increased online advertising costs in its business-to-consumer (“B2C”) channel since the start of 2021; (2) lower conversion rates in its online advertising in its B2C business; (3) increased customer acquisition costs and more tepid B2C demand than represented to investors; and, (4) ballooning customer acquisition costs and worsening growth and gross margin trends.
In addition, Defendants overstated Talkspace's accounts receivable from certain health plan clients in its business-to-business channel.
The truth emerged through partial disclosures beginning on Aug. 9, 2021, when Talkspace blamed disappointing Q2 2021 financial results on increasing customer acquisition costs and a sequential decline in active members in the B2C channel.
Then, on Nov. 15, 2021, Talkspace reported dismal Q3 2021 financial results reflecting slowing revenue growth, a lower number of acquired customers in its B2C business, and an increased allowance for credit losses.
Within a week, co-founders CEO Oren Frank, Head of Clinical Services Roni Frank, and COO Mark Hirschhorn abruptly left the company.
“We're focused on investors' losses and proving Defendants concealed known trends to induce shareholders to vote in favor of the SPAC merger,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Talkspace and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman .
Whistleblowers: Persons with non-public information regarding Talkspace should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email .
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com . For the latest news visit our newsroom or follow us on Twitter at @classactionlaw .
Contact:
Reed Kathrein, 844-916-0895
Tags TALK fraud TALK lawsuit TALK class action TALK investor fraud TALK securities TALK stock TALK investor TALK shareholder Class Action Related Links
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