NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Middle District of Tennessee on behalf of investors that purchased Clover Health Investments Corp. (NASDAQ: CLOV, CLOVW) securities between October 6, 2020 and February 4, 2021, inclusive (the “Class Period”) and/or pursuant or traceable to the Company’s registration statement and prospectus issued in connection with the December 2020 Merger. Investors have until April 6, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Clover Health provides healthcare insurance services and purports to use proprietary technology to collect, structure, and analyze health and behavioral data.
On January 7, 2021, Clover merged with SPAC Social Capital Hedosophia Holdings Corp. III and Clover’s common shares began trading on the NASDAQ under the ticker symbol “CLOV,” closing at $15.90 per share, and on January 11, Clover’s redeemable warrants began trading on the NASDAQ under the ticker symbol “CLOVW,” closing at $3.36 per warrant.
On February 4, 2021, Hindenburg Research issued a report stating that prior to the merger, Clover has been under active investigation by the U.S. Department of Justice for issues ranging from kickbacks to marketing practices to undisclosed third-party deals. Clover did not reveal that it was under active investigation by the DOJ.
On this news, shares of Clover common shares (CLOV) plummeted from their February 3, 2021 closing price of $13.95 per share to close at $12.23 per share on February 4, 2021, and Clover warrants (CLOVW) fell $0.18 per warrant, to close at $3.39 per warrant on February 4, 2021.
The complaint, filed on February 5, 2021, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Clover was the recipient of a Civil Investigative Demand from the DOJ; (ii) much of Clover’s sales are driven by a major related party deal that Clover not only failed to disclose but took active steps to conceal; (iii) Clover’s subsidiary Seek Insurance failed to disclose its relationship with Clover and misled consumers as to its purported independence; (iv) Clover’s software was in fact rudimentary; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased Clover Health securities during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.