SAN FRANCISCO, March 05, 2022 (GLOBE NEWSWIRE) — Hagens Berman urges Talkspace, Inc. (NASDAQ: TALK, HEC, HECCU, HECCW) investors with significant losses who were eligible to vote on June 17, 2021 regarding Talkspace’s proposed merger with special purpose acquisition company (“SPAC”) Hudson Executive Investment Corporation (“HEIC”) or who purchased securities of the company in the open market during the recourse period to submit your losses now.
Class period: June 11, 2020 – November 15, 2021
Lead Applicant Deadline: March 8, 2022
To visit: www.hbsslaw.com/investor-fraud/TALK
Contact a lawyer now: TALK@hbsslaw.com
Talkspace, Inc. (TALK) Securities Class Action:
The complaint alleges that Talkspace, HEIC and certain of its key 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 misrepresented and concealed that Talkspace was experiencing: (1) a significant increase in 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) higher customer acquisition costs and more tepid B2C demand than represented to investors; and (4) soaring customer acquisition costs and deteriorating growth and gross margin trends.
In addition, defendants overstated Talkspace’s accounts receivable from certain health plan customers in its business-to-business channel.
The truth emerged through partial disclosures beginning August 9, 2021, when Talkspace blamed disappointing second-quarter 2021 financial results on higher customer acquisition costs and a sequential decline in active members in the channel. B2C.
Then, on November 15, 2021, Talkspace announced dismal financial results for the third quarter of 2021, reflecting slower revenue growth, fewer customers acquired in its B2C business and an increase in the provision for credit losses.
Within a week, co-founders, CEO Oren Frank, head of clinical services Roni Frank and chief operating officer Mark Hirschhorn abruptly left the company.
“We are focused on investor losses and proving that defendants concealed known tendencies to induce shareholders to vote in favor of the SPAC merger,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you have invested in Talkspace and are suffering significant losses, or have knowledge that may help the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: People with nonpublic information about Talkspace should consider their options to help with the investigation or take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30% of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TALK@hbsslaw.com.
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Reed Kathrein, 844-916-0895