OKLAHOMA CITY--(BUSINESS WIRE)--The law firm of Federman & Sherwood has initiated an investigation into Clover Health Investments, Corp [NASDAQ: CLOV] with respect to possible violations of federal securities laws.
On January 7, 2021, Clover Health Investments, Corp. (“CLOV”) merged with SPAC Social Capital Hedosphia Holdings Corp. III and began to trade under the symbol CLOV. On February 4, 2021, Hindenburg Research published a report about CLOV titled "Clover Health: How the "King of SPACs" Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation." The report alleged that Clover "has not disclosed that its business model and its software offering, called the Clover Assistant, are under active investigation by the Department of Justice (DOJ), which is investigating at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals[.]" The report further noted that "multiple former [Clover] employees explained that much of Clover's sales are fueled by a major undisclosed relationship between Clover and an outside brokerage firm controlled by Clover's Head of Sales, Hiram Bermudez." On this news shares of Clover stock fell $1.72 per share to close at $12.23 per share on February 4, 2021.
If you purchased CLOV securities prior to February 4, 2021, have lost money and are interested in pursuing a legal action, or if you have questions about your rights, please email rkh@federmanlaw.com or call (405) 235-1560 or you can visit our website at https://www.federmanlaw.com/blog/federman-sherwood-investigates-clover-health-investments-corp-for-possible-violations-of-federal-securities-laws/ to complete the certification Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.