The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against TaskUs, Inc. (TASK)

The Law Offices of Frank R. Cruz reminds investors of the upcoming April 25, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired TaskUs, Inc. (“TaskUs” or the “Company”) (NASDAQ: TASK) securities between June 11, 2021 and January 19, 2022, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On January 20, 2022, Spruce Point Capital Management, LLC published a report alleging, among other things, that 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.” Regarding the financial strain, the report alleged that “28% of sales [are related] to Facebook and related to the controversial area of ‘Content Moderation,’” which has “requir[ed] more labor to fill tasks, but that it is not translating into additional revenue.”

On this news, TaskUs’s stock fell $5.46, or 15.3%, to close at $30.13 per share on January 20, 2022, thereby injuring investors.

The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed 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(2) the Content Security market was smaller than Defendants represented and Defendants’ representations were based on outdated market data; (3) TaskUs improperly recognized revenue from certain key contracts; (4) Defendants overstated the size of TaskUs’ workforce as well as employee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) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired TaskUs securities during the Class Period, you may move the Court no later than April 25, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220422005111/en/