TaskUs Class Action Reminder
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In TaskUs To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - April 25, 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 that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in TaskUs stock or options between June 11, 2021 and January 19, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/TASK.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) TaskUs was experiencing severe financial strain and business challenges, particularly with its most important customer Facebook; (2) the Content Security market was smaller than Defendants represented and Defendants' representations were based on outdated market data; (3) TaskUs improperly recognized revenue from certain key contracts; (4) Defendants overstated the size of TaskUs' workforce as well as employee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 a reasonable basis.
On January 20, 2022, Spruce Point Capital Management, LLC ("Spruce Point") issued a report titled "Moderating the Bull Case Content" 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 is covering-up financial strain with reduced disclosures, cherry-picked market data, and non-standard key performance metrics." Additionally, Spruce Point stated, "we find evidence of increasing strain in the relationship" between TaskUs and its largest customer Facebook "and believe margins and cash flow are set to contract more than expected." Spruce Point also stated, "we find a pattern of [TaskUs] embellishing the size of its workforce 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 20, 2022, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding TaskUs' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/121636