The drop follows a series of downward revisions regarding the company's financial health. In February, Teladoc projected full-year revenue between $2.47 billion and $2.59 billion. By April, those expectations were tightened as the company struggled with its BetterHelp division. CEO Charles Divita previously cited an accelerated decline in cash-paying users and difficulties scaling insurance capacity as primary factors behind the shifting outlook.

Levi & Korsinsky is currently examining whether the company issued materially false or misleading statements regarding its forward-looking revenue projections. Investors who purchased shares and suffered financial losses are being encouraged to submit their transaction records for a no-cost evaluation. The investigation focuses on whether shareholders were adequately informed of the risks facing the BetterHelp segment and the broader business model throughout the year.