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TALK.US
id: 590

Talkspace (TALK) $8.5M Shareholder Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
S.D. New York
Court
1:22-cv-00163-PGG
Case number
11 Jun 2020
Class period Start
15 Nov 2021
Class period End
23 Oct 2023
Claim deadline
Talkspace (TALK) agreed to settle $8.5 million with shareholders.

The Complaint alleged that, in an attempt to secure shareholder support for the Merger, on May 28, 2021, Defendants issued a materially false and misleading Preliminary Proxy on Schedule 14A.

The Proxy, which recommended that HEIC shareholders vote in favor of the Merger, allegedly misrepresented Talkspace’s business, financials, and prospects, by omitting, among other things, that:
  1. Talkspace was experiencing significantly increased online advertising costs in its business-to-consumer (“B2C”) channel since the start of 2021;
  2. Talkspace was experiencing lower conversion rates in its online advertising in its B2C business;
  3. Talkspace was experiencing increased customer acquisition costs and more tepid B2C demand than represented to investors;
  4. Talkspace was suffering from ballooning customer acquisition costs and worsening growth and gross margin trends;
  5. Talkspace had overvalued its accounts receivables from certain of its health plan clients in its business-to-business channel, which amounts required adjustment downward; and
  6. as a result of the foregoing, Talkspace’s 2021 financial guidance was not achievable and lacked any reasonable basis in fact.
The Complaint further alleged that after the Merger closed the Proxy was revealed to be materially false and misleading, causing the price of Talkspace common stock to substantially decline and Talkspace investors to suffer damages under the Exchange Act.
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.09
Filing date
07 January 2022
Plaintiffs
Steven Jacob Greenblatt, Montague Street LP, Greenblatt Family Investments LLC, William Greenblatt, Judith Greenblatt, the Brandon T. Greenblatt 2015 Trust, the Maggie S. Greenblatt 2015 Trust, the Steven Jacob Greenblatt 2015 Trust, Ivan M. Baron, Luis Diaz Valdez
Attorneys
Robbins Geller Rudman & Dowd LLP (Melville, NY), Rolnick Kramer Sadighi LLP (New York, NY)
Defendants
Douglas L. Braunstein, Douglas G. Bergeron, Jonathan Dobres, Robert Greifeld, Amy Schulman, Thelma Duggin, Oren Frank, Mark Hirschhorn
Judge
Hon. Paul G. Gardephe
Administrator
Gilardi & Co LLC
Court hearing date
30 October 2023
Exclusion deadline
09 October 2023
Objection deadline
09 October 2023
Hearing deadline
09 October 2023
Attorney fee
$2,625,000
Class wide damages
$95,302,506
Trades matching type
FIFO
+$8,500,000
Total Settlement Amount

Talkspace Inc

Talkspace, Inc. operates as a virtual behavioral healthcare company. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans thro...

    Ticker
    TALK.US
    ISIN
    US87427V1035
    CIK
    1803901
    Sector
    Healthcare
    Industry
    Health Information Services
    Country
    USA
    Address
    622 Third Avenue, New York, NY, United States, 10017