On Dec. 5, the same day the report was published, Teladoc Health issued the following statement:
“We take workplace conduct matters very seriously. The SIRF report contains several factual inaccuracies. When we were made aware of the allegations against [CFO] Mark Hirschhorn in 2016, we engaged an outside law firm to investigate the claims. That investigation found violations solely of our workplace relationship policy, and our board of directors took swift and appropriate disciplinary action to address the violations. This matter was handled in a prompt, thorough and fair manner. We are deeply committed to ensuring a safe, respectful work environment where all individuals are treated fairly and equally.”
Here are seven details from the SIRF report, which is based on interviews with several anonymous former employees familiar with the matter:
1. The report alleges Teladoc Health CFO Mark Hirschhorn had a two-year affair with Charece Griffin, an employee many levels below him. The two did not keep their relationship a secret.
2. Ms. Griffin was promoted several times during the course of the relationship, while others with reputedly more industry experience or better credentials had been passed over.
3. Additionally, the report claims Mr. Hirschhorn would tell Ms. Griffin when he thought there were good opportunities to sell Teladoc Health shares. As part of her compensation, Ms. Griffin had received a stock grant.
4. The alleged insider trading was reportedly the last straw for Amy McKay, former clinical director and vice president of Teladoc Health’s payer relations unit. In October 2016, she submitted an eight-page document detailing the relationship and submitted it to the legal and human resources departments, which tapped an outside law firm to investigate the matter.
5. As a result of the investigation, Mr. Hircshhorn’s employment contract was amended to prohibit him from violating the employee handbook, and the company suspended the scheduled share vesting awarded to him as compensation for one year.
6. In late-2017, Ms. Griffin reportedly resigned from Teladoc Health.
7. Ms. McKay’s employment was terminated in October 2017 — one year after she blew the whistle on the alleged affair and insider trading. She was told the term, “was a business decision,” according to the report.
SIRF said it made multiple attempts to reach Mr. Hirschhorn, Ms. Griffin and officials at Teladoc Health, but did not receive responses.
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