Securities Class Action Lawsuit Filed On Behalf Of Investors Of TaskUs, Inc.
Kehoe Law Firm, P.C. is investigating whether TaskUs, Inc. (“TaskUs,” “TASK,” or the “Company”) (NASDAQ: TASK) violated federal securities laws.
On February 23, 2022, a securities class action lawsuit was filed in United States District Court, Southern District of New York, against TaskUs on behalf of all persons and entities that purchased or acquired TaskUs publicly-traded securities between June 11, 2021 and January 19, 2022, inclusive (the “Class Period”).
INVESTORS OF TASK STOCK WHO ACQUIRED THEIR SECURITIES DURING THE CLASS PERIOD AND LOST MONEY ARE ENCOURAGED EITHER TO CLICK HERE TO PROVIDE INFORMATION ABOUT THEIR TASKUS INVESTMENT LOSSES OR CLICK HERE TO DISCUSS JOINING THE CLASS ACTION LAWSUIT.
According to the complaint, the TaskUs defendants’ statements were materially false and misleading, as (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(2) the Content Security market was smaller than Defendants represented and Defendants’ representations were based on outdated market data; (3) TaskUs improperly recognized revenue from certain key contracts; (4) Defendants overstated the size of TaskUs’ workforce as well as employee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.
To request a copy of the class action complaint, please CLICK HERE.
TaskUs investors should also be aware that Spruce Point Capital Management issued a report on January 20, 2022 which, among other things, stated, that “[a]fter conducting a forensic financial and accounting review, Spruce Point believes shares of TaskUs . . . a highly promoted business process outsourcing (BPO) firm to digital and emerging technology companies, 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.”
On this news, the stock price of TaskUs dropped significantly and traded down more than 20% during intraday trading on January 20, 2022. The TASK stock price closed at $30.13, down 15.34% on January 20, 2022.