San Diego, California--(Newsfile Corp. - April 16, 2022) - Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of TaskUs, Inc. ("TaskUs" or the "Company") (NASDAQ: TASK). The class action is on behalf of shareholders who purchased TaskUs securities between June 11, 2021 and January 19, 2022, inclusive (the "Class Period"). To serve as lead plaintiff in this class action, you must move the Court no later than April 25, 2022.
What actions may I take at this time? If you suffered a substantial loss and are interested in learning more about being a lead plaintiff, please contact Jim Baker (jimb@johnsonfistel.com) by email or phone at 619-814-4471. If emailing, please include a phone number.
To join this action, you can click or copy and paste the link below in a browser: https://www.cognitoforms.com/JohnsonFistel/TaskUsInc2
There is no cost or obligation to you.
On January 20, 2022, Spruce Point Capital Management, LLC published a short-seller report on TaskUs. In the report, Spruce Point states, "After conducting a forensic financial and accounting review, Spruce Point believes shares of TaskUs, Inc. (Nasdaq: TASK), 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."
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and misleading statements and failing to disclose that (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(2) the Content Security market was smaller than Defendants represented, and Defendants' representations were based on outdated market data; (3) TaskUs improperly recognized revenue from certain key contracts; (4) Defendants overstated the size of TaskUs' workforce as well as employee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 preceding, Defendants' positive statements about the Company's business, operations, and prospects were materially false and misleading and lacked a reasonable basis.
A lead plaintiff will act on behalf of all other class members in directing the TaskUs class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor's ability to share any potential recovery of the TaskUs class action lawsuit is not dependent upon serving as lead plaintiff.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/120651
