Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against Clover Health Investments Corp. and Encourages Investors to Contact the Firm
NEW YORK, April 2, 2021 (GLOBE NEWSWIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of investors securities of Clover Health Investments Corp. issued between October 6, 2020 and February 4, 2021 inclusive (including the “Class Period”). (NASDAQ: CLOV, CLOVW) and / or as per the company’s registration statement and traceable prospectus issued in connection with the merger in December 2020. Investors have until April 6, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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Clover Health provides health insurance services and claims to use proprietary technologies 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 stock traded on NASDAQ under the symbol “CLOV” and closed at $ 15.90 per share. On January 11th, Clover’s redeemable warrants began trading on NASDAQ under the ticker symbol “CLOVW” and closes at $ 3.36 per warrant.
On February 4, 2021, Hindenburg Research released a report that found that prior to the merger, the U.S. Department of Justice was actively investigating Clover for issues ranging from setbacks to marketing practices to undisclosed dealings with third parties. Clover did not announce that it was actively investigated by the DOJ.
In that news, the shares of Clover Common Stock (CLOV) fell from their closing price on February 13, 2021 from $ 13.95 per share to $ 12.23 per share on February 4, 2021, and the Clover Warrants (CLOVW) fell up $ 0.18 per warrant to $ 3.39 per warrant on February 4, 2021.
The complaint, filed on February 5, 2021, alleges that defendants made materially false and misleading statements about the company’s business throughout the class period. In particular, the defendants made false and / or misleading statements and / or failed to disclose that: (i) Clover was the recipient of a civil investigation request from the DOJ; (ii) Much of Clover’s sales are driven by an important related party deal that Clover has not only not disclosed, but actively taken to hide it. (iii) Clover’s subsidiary Seek Insurance has failed to disclose its relationship with Clover and has misled consumers as to their alleged independence. (iv) Clover’s software was rudimentary indeed; and (v) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
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If you have purchased Clover Health securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to them please contact to Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC 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, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.