Radnor, Pennsylvania–(Newsfile Corp. – March 31, 2022) – The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against TaskUs, Inc. (“TaskUs”) (NASDAQ: TASK). The action charges TaskUs with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of TaskUs’ materially misleading statements to the public, TaskUs’ investors have suffered significant losses.
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
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LEAD PLAINTIFF DEADLINE: APRIL 25, 2022
CLASS PERIOD: JUNE 11, 2021 THROUGH JANUARY 19, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. at (484) 270-1453 or via email at [email protected]
TASKUS’ ALLEGED MISCONDUCT
TaskUs is a business process outsourcing company focused on providing three key services to technology companies: (1) Digital Customer Experience (2) Content Security; and (3) Artificial Intelligence Operations.
On January 20, 2022, Spruce Point Capital Management, LLC issued an 80-page report on TaskUs titled “Moderating the Bull Case Content” based on its “forensic financial and accounting review” of TaskUs. The report indicated that TaskUs “has a pattern of exaggerated and inflated business claims, including revenue, and is covering-up financial strain with reduced disclosures, cherry-picked market data, and non-standard key performance metrics. With 28% of sales to Facebook and related to the controversial area of ‘Content Moderation’ we find evidence of increasing financial strain in the relationship and believe margins and cash flow are set to contract more than expected.” Additionally, the report stated, “we find a pattern of embellishing the size of its workforce and making overly optimistic revenue growth claims.”
Following this news, the price of TaskUs’ stock fell $5.46 per share, or more than 15%, from $35.59 per share on January 19, 2022, to $30.13 per share at the close of trading on January 20, 2022.
WHAT CAN I DO?
TaskUs investors may, no later than April 25, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages TaskUs investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(484) 270-1453
[email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/118654
Source: Newsfile Corp.
Release ID: 220049
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