Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Teladoc, Direct Digital, Cambium, and Enphase and Encourages Investors to Contact the Firm

By: Bragar Eagel & Squire via GlobeNewswire

June 30, 2024 at 21:00 PM EDT

NEW YORK, June 30, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Teladoc Health, Inc. (NYSE: TDOC), Direct Digital Holdings, Inc. (NASDAQ: DRCT), Cambium Networks Corporation (NASDAQ: CMBM), and Enphase Energy, Inc. (NASDAQ: ENPH). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

Teladoc Health, Inc. (NYSE: TDOC)

Class Period: November 2, 2022 - February 20, 2024

Lead Plaintiff Deadline: July 16, 2024

Teladoc provides online, direct-to-consumer health service services. BetterHelp is Teladoc’s largest division and contributes the Company’s greatest revenue share, contributing about 42% of overall revenue.

The Teladoc class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Teladoc continued to expand its marketing spend throughout 2023, despite public assurances that it would pull back its advertising spending; (ii) increased marketing spend on BetterHelp deteriorated Teladoc’s revenue, with little return for that investment; (iii) despite Teladoc’s acknowledgment that increased advertising spend would be marginally inefficient due to market saturation, it continued to grow its advertising spend in the BetterHelp business; and (iv) despite public statements that there remained “a long runway” for BetterHelp membership growth, BetterHelp’s membership stagnated and then decreased in 2023, due to market saturation, largely due to BetterHelp’s own marketing.

The Teladoc class action lawsuit further alleges that on February 20, 2024, Teladoc released its fourth quarter of 2023 earnings report on Form 10-K, which demonstrated substantially increased advertising costs “substantially driven by higher digital and media advertising costs related to BetterHelp.” Teladoc also revealed that BetterHelp revenue fell $1 million compared to the year prior and fell about $10 million from the third to the fourth quarter of 2023; that BetterHelp lost members for two consecutive quarters, despite that increased advertising spend; and that Teladoc’s revenue was flat compared to the prior year and down 3% sequentially – well below expectation, according to the complaint. On this news, the price of Teladoc’s shares fell by more than 23%, according to the Teladoc class action lawsuit.

For more information on the Teladoc class action go to: https://bespc.com/cases/TDOC

Direct Digital Holdings, Inc. (NASDAQ: DRCT)

Class Period: April 17, 2023 - March 25, 2024 (Common Stock Only)

Lead Plaintiff Deadline: July 22, 2024

The suit alleges that throughout the Class Period, Defendants made false and misleading statements, as well as failed to disclose material facts, including that: (1) the Company’s transition toward a “cookie-less” advertising environment was accelerated and would impact revenue in 2024; (2) the Company’s alternatives to third-party cookies, including planned investments in AI and machine learning to build on first-party data sources, would not be viable alternatives to third-party cookies and similar tracking technologies; (3) the Company did not have adequate solutions to address the impending phase out of third-party cookies by Google; and (4) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the effectiveness of Direct Digital’s platform and related financial results, growth, and prospects.

For more information on the Direct Digital class action go to: https://bespc.com/cases/DRCT

Cambium Networks Corporation (NASDAQ: CMBM)

Class Period: May 8, 2023 - January 18, 2024

Lead Plaintiff Deadline: July 22, 2024

On August 1, 2023, after the market closed, Cambium reported that second quarter 2023 revenue fell 23% sequentially due to “higher channel inventories” that resulted in “lower demand for Enterprise products.” As a result, the Company reduced its fiscal 2023 guidance, now expecting revenue to decline 7% to 11% year-over-year. The Company also announced that the Company’s Chief Executive Officer, Atul Bhatnagar, would step down immediately.

On this news, the price of Cambium shares declined by $4.89 per share, or 30.07%, to close at $11.37 per share on August 2, 2023, on unusually heavy trading volume.

Then, on October 4, 2023, after the market closed, Cambium announced preliminary third quarter 2023 revenue “between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million[.]” The Company attributed the shortfall to, in part, “a decrease in orders and an increase in stock rotations from distributors in the Enterprise business” and “pressure” from “channel inventories.”

On this news, the price of Cambium shares declined by $2.87 per share, or 36.2%, to close at $5.05 per share on October 5, 2023, on unusually heavy trading volume.

Then, on January 18, 2024, after the market closed, Cambium revealed that preliminary fourth quarter 2023 revenue was expected to be “approximately $40.0 million compared to the previous outlook of $45.0-$50.0[.]” The Company attributed the revenue shortfall to “offering aggressive Enterprise product discounts to clear excess channel inventories.” The Company further revealed “gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves.” Moreover, the Company’s Chief Financial Officer would depart Cambium on February 2, 2024.

On this news, the price of Cambium shares declined by $0.60 per share, or 12.40%, to close at $4.24 per share on January 19, 2024, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that there was a buildup of inventory in the Company’s distribution channels; (2) that the Company and its distributors were reasonably likely to offer aggressive discounts to reduce the high channel inventories; (3) that the Company’s revenue would decline sequentially until the excess channel inventory was sold through; (4) that Cambium was likely to incur significant charges to writedown excess and obsolete inventory; (5) that, as a result of the foregoing, the Company’s fiscal 2023 revenue and earnings would be adversely affected; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the Cambium class action go to: https://bespc.com/cases/CMBM

Enphase Energy, Inc. (NASDAQ: ENPH)

Class Period: February 7, 2023 - April 25, 2023

Lead Plaintiff Deadline: July 29, 2024

According to the complaint, defendants created the false impression that they possessed reliable information pertaining to the Company’s projected revenue outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations. In truth, Enphase had been experiencing a decrease in battery shipments to Europe and California, slowdown in battery deployment and adoption, longer transition period with NEM 3.0, and slower output of inverters manufactured by the new US base manufacturing lines. Defendants misled investors by providing the public with materially flawed revenue outlook for fiscal 2023.

Plaintiff alleges that on April 25, 2023, Enphase announced its first quarter earnings, stating revenue in the United States had decreased by approximately 9% attributing it to macroeconomic conditions. Additionally, defendants put out a weak second quarter outlook for 2023 where revenue was estimated to be within the range of $700 million to $750 million. On this news, the price of Enphase’s common stock declined dramatically. From a closing market price of $220.60 per share on April 25, 2023, Enphase’s stock price fell to $163.83 per share on April 26, 2023, a decline of nearly 26% in the span of just a single day.

For more information on the Enphase class action go to: https://bespc.com/cases/ENPH

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com

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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Teladoc, Direct Digital, Cambium, and Enphase and Encourages Investors to Contact the Firm

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