Mark Hirschhorn has resigned as chief financial officer and chief operating officer of Teladoc after investors filed a class-action lawsuit alleging Hirschhorn and another employee engaged in insider trading.
Investors filed the suit against the company after the Southern Investigative Reporting Foundation reported that Hirschhorn had an affair with Charece Griffin, another Teladoc employee, and that the two traded company stock together.
The company denied the years-old allegations made in the lawsuit, saying the relationship violated only the company's workplace relationship policy. The company also said the foundation's report contained "several factual inaccuracies."
"While this was a difficult decision, it's the right one for my family and the company," Hirschhorn said in a statement.
Teladoc is searching for permanent replacements for Hirschhorn's roles. Until then, Teladoc President Peter McClennen will become interim COO and Teladoc Controller Gabriel Cappucci will handle financial activities.
After Teladoc announced Hirschhorn's resignation, its stock price dipped, falling 7% between Friday's and Monday's stock market closes. But the company maintained its expectations for its 2018 financial performance. It expects revenue to land between $414 million and $416 million, which would be a significant increase over its $233 million in revenue in 2017.
Earlier in 2018, Teladoc acquired Advanced Medical, whose focus is outside the U.S., for $352 million. The move reflects the consolidation that's affecting all of healthcare, including the telemedicine sector.
