INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against Clover Health Investments, Corp.
NEW YORK–(BUSINESS WIRE) – Kirby McInerney LLP law firm announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of those Clover Health Investments, Corp. (“Clover” or the “Company”) (NASDAQ: CLOV) securities from October 6, 2020 to February 3, 2021 (the “Class Period”). Investors have until April 6, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
The lawsuit alleges that throughout the classroom, defendants made materially false and / or misleading statements and / or failed to disclose that: (i) Clover was the recipient of a DOJ civil investigation request; (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.
On January 7, 2021, Clover merged with SPAC Social Capital Hedosophia Holdings Corp. III and began trading on NASDAQ under the symbol CLOV. 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, Clover stock fell $ 1.72 per share, or approximately 12.3%, to close at $ 12.23 per share on February 4, 2021, a one-day loss in market cap of approximately $ 700 million corresponds.
If you have purchased or otherwise acquired Clover securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, via email at investigations @ kmllp. com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm focused on securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in total recoveries of $ billion. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
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