Talkspace (TALK) $8.5M Shareholder Settlement
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:
Talkspace was experiencing significantly increased online advertising costs in its business-to-consumer (“B2C”) channel since the start of 2021;
Talkspace was experiencing lower conversion rates in its online advertising in its B2C business;
Talkspace was experiencing increased customer acquisition costs and more tepid B2C demand than represented to investors;
Talkspace was suffering from ballooning customer acquisition costs and worsening growth and gross margin trends;
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
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.
Frequently Asked Questions
All persons who purchased or otherwise acquired the publicly traded securities of Talkspace, during the period from June 11, 2020, through November 12, 2021, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.09 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.36 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.