SAN FRANCISCO, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges TaskUs, Inc. (NASDAQ: TASK) with significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.

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TaskUs, Inc. (TASK) Investigation:

The investigation 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, TaskUs’ largest customer.

Leading up to and after TaskUs’ initial public offering in June 2021, the company and its senior management have touted the size and growth of the Content Security market and the company’s ties to Facebook, enabling TaskUs to complete its IPO and subsequently permit the company’s CEO and President to each sell about 1.9 million shares at $63/share to the investing public.

TaskUs’ and senior management’s 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 whether 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 [email protected].

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Contact:
Reed Kathrein, 844-916-0895