INVESTIGATION ALERT: Edelson Lechtzin LLP Announces Investigation Teladoc Health Inc. (NYSE: TDOC) and Urges Investors with Substantial Losses to Contact the Firm

NEWTOWN, Pa., Feb. 21, 2025 /PRNewswire/ -- Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving Teladoc Health Inc. (NYSE: TDOC) resulting from allegations of providing potentially misleading business information to the investing public.

If you have information that could assist in the Teladoc investigation or if you are a Teladoc investor who suffered a loss and would like to learn more, you can provide your information HERE.

You can also contact attorney Eric Lechtzin of Edelson Lechtzin LLP by calling 844-563-5550 ext. 1 or via e-mail at elechtzin@edelson-law.com.

THE COMPANY: Teladoc Health. is a telemedicine and virtual healthcare provider.

THE ALLEGED WRONGDOING: On February 19, 2025, Blue Orca Capital issued a report announcing that Blue Orca has a short position in Teladoc Health Inc. The rationale for Blue Orca's short position is that Teladoc is providing mental health therapy from its AI platform and not licensed therapists. Therapists are paid by the quantity of words in their responses to patients for mental health treatment. This payment method incentivizes therapists to generate longer and more generic messages to patients. This type of message is easily created by AI platforms such as ChatGPT. Therapists are not compensated based on the quality of the communication they have with patients. The AI platform used by Teladoc also causes therapists to overload their schedules to handle patient questions on a 24/7 basis. Blue Orca claims their allegations are supported by extensive field research into Teladoc practices, including patient interviews where, after being confronted by patients, therapists have admitted using AI in their patient communications. 

Blue Orca also believes that Teladoc is engaging in questionable accounting techniques to inflate profitability and cash flows. This was accomplished by shifting R&D expense from the income statement into investing cash flows, which inflated EBITDA by as much as 32% and operating cash flows by 127% for FY 2023.

Blue Orca believes that Teladoc is far less profitable and generates far less cash than investors are led to believe. Additionally, the exposure of Teladoc professionals using AI to treat mental health patients will likely cause a significant deterioration of that business and erosion of the stock price.

ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and catastrophic injuries.

For more information, please contact:

Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 ext. 1
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com

This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so counsel does not represent you unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing now. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

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SOURCE Edelson Lechtzin LLP