San Francisco, California--(Newsfile Corp. - April 12, 2022) - Hagens Berman urges TaskUs, Inc. (NASDAQ: TASK) investorswith significant losses to submit your losses now. A securities fraud class action has been filed and investors with significant losses have an opportunity to lead the case.
Class Period: June 11, 2021 - Jan. 19, 2022
Lead Plaintiff Deadline: Apr. 25, 2022
Visit:www.hbsslaw.com/investor-fraud/TASK
Contact An Attorney Now:TASK@hbsslaw.com
844-916-0895
TaskUs, Inc. (TASK) Securities Fraud Class Action:
The litigation focuses on TaskUs' and senior management's claims about the company's content monitoring and moderation services ("Content Security") business, a core offering largely tied to Facebook, the size of that market, and workforce-related metrics.
More specifically, the complaint alleges Defendants made false and misleading statements and/or failed to disclose: (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important customer (Facebook); (2) the Content Security market was smaller than Defendants represented and based on outdated market data; (3) TaskUs improperly recognized revenue from certain key contracts; and, (4) Defendants overstated the size of TaskUs' workforce and employee retention rates, and understated attrition rates.
Defendants' claims came under question on Jan. 20, 2022, when analyst Spruce Point Management issued a strong sell opinion, in part based on interviews with former TaskUs executives. According to Spruce Point, 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." More specifically, Spruce Point: (1) accuses TaskUs of cherry-picking reputable third-party data to embellish its growth and avoid disclosing a slowdown in its Content Security business; (2) reported that, according to a former employee and competitor filings, TaskUs has been minimizing its growing competition; (3) raises questions about TaskUs' revenue and expense recognition practices; and, (4) cites TaskUs' Facebook-related accounts receivable growth far outstripping Facebook-related sales growth as evidence the company and senior management have obfuscated problems with Facebook and the Content Security business.
This news drove the price of TaskUs shares sharply lower.
"We're focused on investors' losses and proving TaskUs misrepresented its business and compliance with relevant accounting rules, misrepresented Content Security market size and growth rate, and misrepresented the Facebook relationship and related margins," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in TaskUs and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding TaskUs should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TASK@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/120223
