Bragar Eagel & Squire, PC reminds investors that a class action lawsuit has been filed against UnitedHealth, Vestis, Teladoc and Cambium and encourages investors to contact the firm



NEW YORK, June 21, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed on behalf of shareholders of UnitedHealth Group Incorporated (NYSE: NYSE: ). Corporation (NASDAQ: CMBM ). Shareholders may petition the Court to serve as lead plaintiff by the deadlines below. More information about each case can be found in the links provided.

UnitedHealth Group, Inc. (NYSE: UNH)

Collective period: March 14, 2022 to February 27, 2024 (common shares only)

Lead plaintiff deadline: July 16, 2024

UnitedHealth is an American multinational health insurance and services company comprised of two distinct and complementary businesses: Optum and UnitedHealthcare. UnitedHealthcare provides health insurance to individuals, employers and small businesses and is the largest insurance provider in the United States. Optum provides healthcare-related services, including software solutions, payment services and data analytics.

On January 6, 2021, UnitedHealth announced an agreement to acquire Change Healthcare (NASDAQ: ) (Change) and integrate it into its Optum business. Change is a healthcare technology company that provides data solutions designed to improve clinical decision-making and streamline payment processes across the healthcare system. On February 24, 2022, the U.S. Department of Justice (DOJ) filed a lawsuit challenging UnitedHealth's acquisition of Change. The U.S. Department of Justice claimed that the proposed acquisition would violate antitrust laws because the integration of Change and Optum would give UnitedHealth access to information from nearly all health insurance companies and the health data of every American. Ultimately, the court in the Justice Department lawsuit allowed the acquisition, repeatedly citing UnitedHealth's firewall policy and its commitment to prevent data sharing between UnitedHealth and Optum as reasons for allowing the deal to proceed.

The complaint alleges that throughout the class action period, UnitedHealth repeatedly assured investors that it had taken steps to avoid anticompetitive conduct, including establishing robust firewall processes to prevent the sharing of sensitive customer information (CSI) between UnitedHealthcare and Optum. Specifically, UnitedHealth made it clear that Optum invested significant time, money and resources to ensure [CSI] and isolate it from UnitedHealthcare, and UnitedHealth Group's existing firewall and data security policies prohibit employees from inappropriately sharing external customer CSI. As a result of these misrepresentations, UnitedHealth stock traded at artificially inflated prices during the Class Period.

The complaint further alleges that the truth emerged on February 27, 2024, when the Wall Street Journal reported that the Justice Department had reopened its antitrust investigation into UnitedHealth. In that article, the public learned for the first time that the Justice Department was investigating relationships between various parts of the company, including Optum. Following this disclosure, UnitedHealth stock price fell by $27 per share, wiping out nearly $25 billion in shareholder value.

For more information about the UnitedHealth class action lawsuit, please visit: https://bespc.com/cases/UNH

Vestis Corporation (NYSE: VSTS)

Class period: October 2, 2023 – May 1, 2024 (common shares only)

Lead plaintiff deadline: July 16, 2024

Headquartered in Roswell, Georgia, Vestis is a supplier of uniforms and workplace supplies in the United States and Canada. The company is the result of a spin-off from food services and facilities management provider Aramark on September 30, 2023. Vestis began trading on the New York Stock Exchange under the symbol VSTS on October 2, 2023 (the first day of the Class Period).

Ahead of the pre-spinoff class period, Vestis' incoming executives claimed investments were in place to deliver revenue compound annual growth rate (CAGR) growth of 5% to 7%. They also assured investors that the company's sales team has hit their mark and is reaching the productivity levels we want them to reach. As the class action period progressed, defendants highlighted the very, very good feedback Vestis received from its customer service program and insisted that the company's growth would continue to accelerate, including Vestis providing superior service to its customers.

The class action lawsuit alleges that during the Class Period, defendants made materially false and misleading statements and failed to disclose that: (1) Aramark had historically underinvested in the business that later became Vestis; (2) Vestis’ operating facilities were outdated and sales Poor personnel performance; (3) Vestis' outdated facilities and underperforming sales force resulted in service gaps that hindered the company's growth leverage and resulted in customer attrition; (4) For the foregoing reasons, Defendants' statements regarding Vestis' business, operations, and prospects was materially false and misleading at all relevant times and/or lacked a reasonable basis.

The class action lawsuit further alleges that the truth was revealed before the market opened on May 2, 2024, when Vestis issued a press release announcing financial results for the second quarter of fiscal 2024 ended March 29, 2024. , the company disclosed that the company's revenue was US$705 million, an increase of 0.9% from the same period last year, and lowered its revenue outlook for fiscal 2024 to a range of negative 1% to 0%. In a corresponding earnings call with analysts that day, Chief Executive Officer (CEO) Kimberly Scott revealed the company's challenges related to sales productivity and prudent pricing actions. Te explains that the latter is necessary to improve sales efficiency.[] Retention rates and service gaps lead to price sensitivity. On the same conference call, analysts noted that Vestis had shifted from recently announced price increases to price cuts and questioned the reversal in the defendants' pricing power.

Affected by this news, Vestis' stock price plummeted 45%, from the closing price of $18.47 per share on May 1, 2024, to the closing price of $10.16 per share on May 2, 2024.

For more information about the Vestis class action lawsuit, please visit: https://bespc.com/cases/VSTS

Teladoc Health, Inc. (NYSE: TDOC)

Class time: November 2, 2022 – February 20, 2024

Lead plaintiff deadline: July 16, 2024

Teladoc provides direct-to-consumer online health services. BetterHelp is Teladoc's largest division and contributes the largest share of revenue to the company, accounting for approximately 42% of total revenue.

The Teladoc class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose throughout the Class Period that: (i) Teladoc continued to expand marketing spending throughout 2023 despite public assurances that it would withdraw advertising spending; (ii) Increased BetterHelp marketing spending resulted in Teladoc's revenue declining and little return on investment; (iii) Teladoc continued to increase advertising for its BetterHelp business, although it acknowledged that increasing advertising spending would be somewhat less efficient due to market saturation expenses; (iv) Despite public statements that BetterHelp membership growth still has a long way to go, BetterHelp's membership numbers stagnated in 2023 and then declined 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 2023 earnings report on Form 10-K, which reported a significant increase in advertising costs due to increased digital and media advertising costs related to BetterHelp . Teladoc also disclosed that BetterHelp's revenue fell by US$1 million from the previous year, and fell by approximately US$10 million from the third quarter to the fourth quarter of 2023; despite increased advertising expenditures, BetterHelp still lost members for two consecutive quarters; the complaint stated that Teladoc's revenue It was the same as the previous year and dropped 3% month-on-month, which was “well below expectations.” According to the Teladoc class action lawsuit, Teladoc's stock price fell more than 23% on this news.

For more information about the Teladoc class action lawsuit, please visit: https://bespc.com/cases/TDOC

Cambium Networks, Inc. (NASDAQ: CMBM)

Class time: May 8, 2023 – January 18, 2024

Lead plaintiff deadline: July 22, 2024

After the close on August 1, 2023, Cambium reported a 23% quarter-on-quarter revenue decline in the second quarter of 2023 due to lower demand for corporate products due to increased channel inventory. As a result, the company lowered its guidance for fiscal 2023 and now expects revenue to fall 7% to 11% annually. The company also announced that its chief executive, Atul Bhatnagar, will resign immediately.

Affected by this news, Cambium's stock price fell by $4.89, or 30.07%, to close at $11.37 per share on August 2, 2023, with unusually large trading volume.

Then, after the close on October 4, 2023, Cambium announced preliminary third quarter 2023 revenue in the range of $40.0-$45.0 million, compared to previous guidance of $62.0-$70.0 million[.] The company attributed the shortfall in part to lower dealer orders in its enterprise business, higher inventory turns and channel inventory pressure.

Affected by this news, Cambium's stock price fell by $2.87, or 36.2%, to close at $5.05 per share on October 5, 2023, with unusually large trading volume.

Then, after the close on January 18, 2024, Cambium revealed that preliminary revenue for the fourth quarter of 2023 was expected to be approximately $40.0 million, compared with the previous guidance of $45.0-$50.0[.] The company attributed the revenue shortfall to aggressive enterprise product discounts offered to clear excess channel inventory. The company further revealed that gross margin will also be below the lower end of the range due to higher excess and obsolete inventory reserves. In addition, the company's chief financial officer will leave Cambium on February 2, 2024.

Affected by this news, Cambium's stock price fell by $0.60 per share, or 12.40%, to close at $4.24 per share on January 19, 2024, with unusually large trading volume.

The complaint filed in the class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, the defendants failed to disclose to investors: (1) The company’s distribution channels had inventory overstock; (2) The company and its dealers had a reasonable possibility of offering significant discounts to reduce high-channel inventory; (3) The company’s revenue would be lower than the previous quarter. decline until excess access inventory is sold; (4) Cambium may incur significant charges from writing off excess and obsolete inventory; (5) the Company's revenue and earnings for fiscal 2023 will be adversely affected as a result of the foregoing; and (6) 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 about the Cambium class action lawsuit, please visit: https://bespc.com/cases/CMBM

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC 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, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

Contact information:

Bragar Eagel & Squire, PC
Mr. Brandon Walker
Mr Marion Passmore
(212)355-4648
surveys@bespc.com
www.bespc.com





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