TaskUs Deadline Alert | 2022-03-27 | Press Releases
Securities litigation partner James (Josh) Wilson encourages investors who have suffered losses greater than $100,000 in TaskUs to contact him directly to discuss their options
New York, New York–(Newsfile Corp. – March 27, 2022) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against TaskUs, Inc. (“TaskUs” or the “Company“) (NASDAQ: TASK) and reminds investors of the April 25, 2022 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit that has been filed against the Company.
If you suffered losses greater than $100,000 investing in TaskUs stocks or options between June 11, 2021 and January 19, 2022 and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 Where 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/TASK.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) TaskUs was experiencing severe financial difficulties and business difficulties, particularly with its largest major customer Facebook; (2) the content security market was smaller than that represented by defendants and defendants’ representations were based on outdated market data; (3) TaskUs incorrectly recognized revenue from certain key contracts; (4) Defendants overstated TaskU’s workforce size and employee retention rates, and understated attrition rates; and (5) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially false and misleading and/or lacked reasonable basis.
On January 20, 2022, Spruce Point Capital Management, LLC (“Spruce Point”) released a report titled “Bull Case Content Moderation” based on its “Forensic Financial and Accounting Review” of TaskUs. Spruce Point found that TaskUs “has a pattern of exaggerated and inflated business claims, including revenue, and conceals financial constraints with reduced disclosures, hand-picked market data, and non-standard key performance indicators.” Additionally, Spruce Point said, “we find evidence of growing tension in the relationship ‘between TaskUs and its largest customer Facebook’ and believe margins and cash flow are expected to contract more than expected.” Spruce Point also stated, “We are seeing a pattern of [TaskUs] embellishing its workforce size and making overly optimistic revenue growth claims. »
On this news, 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 19, 2022. January 20, 2022, on an unusually high volume of transactions.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members directing and supervising the litigation on behalf of the putative class. Any member of the putative class may ask the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent member of the class. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding TaskU’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.
Lawyer advertisement. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/118287