In Re Teladoc Health, Inc. SEC. Litig.

Court of Appeals for the Second Circuit·Decided July 27, 2026·No. 25-1022·Unpublished

Opinion

25-1022 In re Teladoc Health, Inc. Sec. Litig.

UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT

SUMMARY ORDER

RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY CITING TO A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.

At a stated term of the United States Court of Appeals for the Second Circuit, held at the Thurgood Marshall United States Courthouse, 40 Foley Square, in the City of New York, on the 27th day of July, two thousand twenty-six.

PRESENT:

RICHARD J. SULLIVAN, JOSEPH F. BIANCO, BETH ROBINSON, Circuit Judges. _____________________________________

IN RE TELADOC HEALTH, INC. SECURITIES LITIGATION

_____________________________________

LEADERSEL INNOTECH ESG,

Lead Plaintiff-Appellant, HUI MA,

Plaintiff-Appellant,

JEREMY SCHNEIDER, Individually and on Behalf of All Others Similarly Situated, WALTER DE SCHUTTER,

Plaintiffs,

v. No. 25-1022

TELADOC HEALTH, INC., JASON GOREVIC, MALA MURTHY, STEPHANY VERSTRAETE, RICHARD J. NAPOLITANO,

Defendants-Appellees,

BIMAL SHAH,

Defendant.

_____________________________________

For Lead Plaintiff-Appellant LAUREN A. ORMSBEE (Carol C. Villegas, and Plaintiff-Appellant: Irina Vasilchenko, and Matthew J. Grier, on the brief), Labaton Keller Sucharow LLP, New York, NY.

For Defendants-Appellees: AUDRA J. SOLOWAY (Daniel J. Kramer, Dylan O. Smith, Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY; Abigail Frisch Vice, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Washington, DC, on the brief), Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY.

Appeal from a judgment of the United States District Court for the Southern

District of New York (Denise L. Cote, Judge).

2 UPON DUE CONSIDERATION, IT IS HEREBY ORDERED,

ADJUDGED, AND DECREED that the March 24, 2025 judgment of the district

court is AFFIRMED.

Lead Plaintiff-Appellant Leadersel Innotech ESG and Plaintiff-Appellant

Hui Ma (collectively, “Plaintiffs”) appeal from the district court’s judgment

dismissing their securities fraud claims against Defendants-Appellees Teladoc

Health, Inc. and its (i) Chief Executive Officer Jason Gorevic, (ii) Chief Financial

Officer Mala Murthy, (iii) Chief Marketing & Engagement Officer Stephany

Verstraete, and (iv) Chief Accounting Officer Richard J. Napolitano (collectively,

“Defendants”). Plaintiffs allege that Defendants violated sections 10(b) and 20(a)

of the Securities Exchange Act of 1934 and Rule 10b-5 by misrepresenting the

success of Teladoc’s efforts to integrate a key acquisition. The district court

granted Defendants’ motion to dismiss, concluding that Plaintiffs failed to plead

scienter. We assume the parties’ familiarity with the underlying facts, procedural

history, and issues on appeal, to which we refer only as necessary to explain our

decision.

3 I. Background

Teladoc is an online healthcare company, and the individual Defendants are

(or were) all Teladoc executives. On October 29, 2020, Teladoc completed an $18.5-

billion merger with Livongo, another online healthcare company. The deal

combined the pre-merger Teladoc’s acute-care business (“Legacy Teladoc”) with

Livongo’s chronic-care business.

Plaintiffs allege that the Defendant executives made various misstatements

about the integration of Livongo into Teladoc. First, they assert that Gorevic

incorrectly claimed, in February and April 2021, that the sales teams of Legacy

Teladoc and Livongo were “fully integrated,” meaning that the teams were

working together and “cross-selling” each other’s services. Pls.’ Br. at 12; J. App’x

at 141, 152 (emphasis omitted). Second, Plaintiffs allege that Verstraete misstated,

in November 2021, that Teladoc had integrated Livongo’s “marketing data and

tech stacks,” Pls.’ Br. at 12; J. App’x at 170, implying that Teladoc was using one

platform to contact both Legacy Teladoc and Livongo customers. Third, Plaintiffs

assert that Teladoc’s 2021 10-K – signed by Gorevic, Murthy, and Napolitano in

February 2022 – misstated risk disclosures by warning that Teladoc “may

encounter” “potential” integration issues when it had already discovered issues

4 specifically in “the integration of management teams, strategies, technologies and

operations, products[,] and services.” Pls.’ Br. at 13; J. App’x at 176 (emphasis

omitted).

The district court initially dismissed all of Plaintiffs’ claims for failure to

plead falsity under Rule 10b-5. Plaintiffs appealed, and we reversed and

remanded, concluding that the complaint adequately pleaded falsity with respect

to these specific statements. Leadersel Innotech ESG v. Teladoc Health, Inc., No. 23-

1112-cv, 2024 WL 4274362, at *4–5 (2d Cir. Sept. 24, 2024). On remand, the district

court again dismissed the complaint – this time for lack of scienter, an issue that it

had not reached in its earlier decision. Plaintiffs timely appealed.

II. Plaintiffs Have Not Pleaded Scienter for Section 10(b) and Rule 10b-5.

We review the dismissal of a complaint de novo, accepting all factual

allegations as true. ECA, Loc. 134 IBEW Joint Pension Tr. of Chi. v. JP Morgan Chase

Co., 553 F.3d 187, 196 (2d Cir. 2009). A “complaint alleging securities fraud must

satisfy the heightened pleading requirements of the Private Securities Litigation

Reform Act [(the ‘PSLRA’)] and [Federal Rule of Civil Procedure 9(b)] by stating

with particularity the circumstances constituting fraud.” IBEW Loc. Union No. 58

5 Pension Tr. Fund & Annuity Fund v. Royal Bank of Scot., 783 F.3d 383, 389 (2d Cir.

2015) (alteration adopted and internal quotation marks omitted).

Under this heightened pleading standard, a plaintiff must “state with

particularity facts giving rise to a strong inference that the defendant acted with”

scienter. 15 U.S.C. § 78u-4(b)(2)(A). It is not enough that “a reasonable factfinder

plausibly could infer from the complaint’s allegations the requisite state of mind.”

Tellabs, Inc. v. Makor Issues & Rts., 551 U.S. 308, 314 (2007). Rather, the factfinder

must first consider “any opposing inference one could draw from the facts

alleged” and then decide whether scienter is “at least as compelling as [that]

opposing inference.” Id. at 324. If any opposing inference is more compelling,

then a plaintiff has failed to meet his burden. Id.

Scienter is “a mental state embracing intent to deceive, manipulate, or

defraud.” Id. (internal quotation marks omitted). A plaintiff may establish

Free access — add to your briefcase to read the full text and ask questions with AI

In Re Teladoc Health, Inc. SEC. Litig., (2d Cir. 2026).

In Re Teladoc Health, Inc. SEC. Litig. (In Re Teladoc Health, Inc. SEC. Litig.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related