Teladoc
The New York-based company posted a net loss of $1 billion, or $5.87 per share, causing its stock price to fall around 15%.
The deal includes an additional $5 million that could be paid to Catapult based on its performance after the sale.
The New York-based company's stock price fell upon news of a 2% decrease in second-quarter revenue and a $837.7 million net loss.
Teladoc will integrate Brightline's pediatric, adolescent and family mental healthcare services into its virtual care platform, expanding care access to individuals zero to 13.
The suit alleges Teladoc made misleading claims about its advertising spending related to BetterHelp causing decreased revenues and a substantial drop in its stock price.
The telemedicine giant reported a net loss of $81.9 million in the first quarter of the year and a 20% increase in EBITDA year-over-year.
The company's chief financial officer, Mala Murthy, will step in as acting CEO.
The New York-based company reported a 10% increase in revenue, boosted by an 18% gain from BetterHelp to $292.4 million.
The expanded partnership allows clinical documentation from virtual care visits to be automatically generated using Microsoft's AI capabilities, including GPT4.
Initially filed in 2022, the complaint alleged the company's representatives misled investors following its $18.5 billion acquisition of Livongo.