Access to medical advice and monitoring is becoming easier as technology makes it possible for patients in Tennessee and across the world to communicate with doctors electronically. Telemedicine is already a billion-dollar industry, and investors are making profits from well-run companies. Unfortunately, one telemedicine company is facing mass torts action from shareholders who blame the actions of its executives for a marked decline in the value of the company’s stock.
The lawsuit was prompted by an investigation that revealed the CFO of Teledoc Health was in a relationship with an administrative assistant at Teladoc. The assistant told investigators that she and the CFO discussed and traded Teladoc stock, and she made her decisions based on the CFO’s advice. In addition to accusations of insider trading, the report alleges that the CFO granted his girlfriend promotions in the company, and shareholders object that these actions jeopardized the operations of the company.
Teledoc denies that any illegal actions occurred, saying the behavior violated company policy only and was dealt with internally. However, the sharp drop in stock value has shareholders seeking answers. The plaintiffs point to a nearly 7 percent decline in Teledoc stock prices this month, and they hold the CFO and his company responsible for their losses.
By using mass torts claims, multiple plaintiffs can seek satisfaction from a single defendant. When dealing with securities violations and other sensitive matters such as those in this case, it is wise for Tennessee plaintiffs to determine the most effective method of seeking damages. They may benefit from the assistance of an attorney with a history of successfully representing shareholders who suffer damages from insider trading and other securities violations.