SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that (i) purchasers or acquirers of MSP Recovery, Inc. f/k/a Lionheart Acquisition Corp. II. (NASDAQ: LIFW) publicly traded securities between April 28, 2022 and August 17, 2023, inclusive (the “Class Period”); (ii) holders of Lionheart common stock eligible to vote at Lionheart’s May 18, 2022 special meeting; and (iii) purchasers or acquirers of MSP Recovery securities pursuant and/or traceable to MSP Recovery’s registration statement filed with the U.S. Securities and Exchange Commission (“SEC”) on July 1, 2022, as amended on July 21, 2022 and declared effective on August 5, 2022 (the “Registration Statement”) have until October 23, 2023 to seek appointment as lead plaintiff of the MSP Recovery class action lawsuit. Captioned Pignatelli v. MSP Recovery, Inc. f/k/a Lionheart Acquisition Corp. II., No. 23-cv-23224 (S.D. Fla.), the MSP Recovery class action lawsuit charges MSP Recovery and certain of MSP Recovery and Lionheart’s top executives with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
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CASE ALLEGATIONS: MSP Recovery commonly does business under the name “LifeWallet” and describes itself as a “leading data analytics company specializing in healthcare Claims recovery.” On May 3, 2022, Lionheart – a special purpose acquisition company, commonly known as a SPAC or blank-check company – filed with the SEC its definitive proxy on Form 424B3 (the “Proxy”) to solicit votes for its May 18, 2022 Special Meeting to approve the planned merger with the then-private MSP Recovery, whereby legacy MSP Recovery would become a publicly traded entity through its merger with Lionheart. Cano Health, Inc. for a time sold legacy and then post-merger MSP Recovery health care claims to try and recover on.
The MSP Recovery class action lawsuit alleges that: (i) MSP Recovery did not disclose that it was under active investigation by the SEC and federal prosecutors; (ii) certain financial information given to investors by MSP Recovery was materially false and misleading; (iii) MSP Recovery did not fully disclose the extent of its issues when it admitted that its financial results would need to be restated; (iv) MSP Recovery was unable to afford the assigned claims on which it depends, and defrauded a major healthcare provider that sold or assigned it its claims; (v) the Registration Statement contained various false or misleading statements and was negligently prepared; (vi) the Proxy contained false or misleading statements; and (vii) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times and/or were negligently prepared.
On July 31, 2023, The Miami Herald released an article entitled “‘Red flags on top of red flags’: Problems mount for UM athletics booster John Ruiz,” about defendant John H. Ruiz, MSP Recovery CEO. The Miami Herald reported, among other things, that Ruiz and MSP Recovery were “the target of federal civil and criminal investigation,” that “SEC investigators are looking at what Ruiz’s company represented to investors about its value and other possible securities violations,” and “[t]he investigation, led by FBI and IRS agents, is looking at financial representations made to investors and spending practices, according to sources.” On this news, the price of MSP Recovery shares declined nearly 6%.
Then, on August 1, 2023, MSP Recovery disclosed that it “received a subpoena dated March 1, 2023 from the SEC . . . and subsequently received a subpoena on May 10, 2023 requesting documents in connection with [MSP Recovery]’s financial statements for the periods ended June 30, 2022 and September 30, 2022 that required restatements as disclosed in [MSP Recovery]’s Form 8-K filed with the SEC on April 14, 2023.” On this news, the price of MSP Recovery shares declined more than 12%.
Thereafter, on August 10, 2023, Cano sued MSP Recovery, related entities, as well as defendant Ruiz in Florida state court, seeking nearly $67 million. In particular, the lawsuit alleged that MSP Recovery has failed to timely file documents with the SEC, including its 2022 Annual Report, to conceal that MSP Recovery is a fraud. On this news, the price of MSP Recovery shares declined more than 18%.
Finally, on August 17, 2023, MSP Recovery disclosed that it “received an additional subpoena from the SEC regarding certain funding sources of [MSP Recovery] prior to the Business Combination, as well as various statements and disclosures by [MSP Recovery] in connection with and following the Business Combination.” MSP Recovery further disclosed that day that it had received a notification letter from Nasdaq’s Listing Qualifications Department, which stated that MSP Recovery wasn’t in compliance with Nasdaq’s Rule 5250(c)(1) as a result of not having timely filed its Form 10-Q for the period ended June 30, 2023. On this news, the price of MSP Recovery declined again the next two trading days, further damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired MSP Recovery publicly traded securities during the Class Period, held Lionheart common stock eligible to vote at Lionheart’s May 18, 2022 special meeting, and/or purchased or acquired MSP Recovery securities pursuant and/or traceable to the Registration Statement to seek appointment as lead plaintiff in the MSP Recovery class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the MSP Recovery class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the MSP Recovery class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the MSP Recovery class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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