Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against MultiPlan Corporation (MPLN)
Radnor, Pennsylvania – (Newsfile Corp. – April 3, 2021) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a class action lawsuit has been filed against MultiPlan Corporation (NYSE: MPLN; MPLN.WS) for securities fraud. (“MultiPlan”) f / k / a Churchill Capital Corp. III (“Churchill III”) on behalf of: (1) persons who have purchased or acquired MultiPlan Securities between July 12, 2020 and November 10, 2020, inclusive (the “School Lesson”); and (2) all holders of Class A common stock of Churchill III who are entitled to participate in the merger of Churchill III with and the acquisition of Polaris Parent Corp. and its consolidated subsidiaries, which closed in October 2020 (the “Merger”).
Investor Deadline: Investors who have purchased or acquired MultiPlan Securities during the Class Period may apply for appointment as Class Lead Prosecutor no later than April 26, 2021. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484-270-1453) or Adrienne Bell, Esq. (484-270-1435); toll free at (844) 887-9500; by email to firstname.lastname@example.org; or click on https://www.ktmc.com/multiplan-corp-securities-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=multiplan.
Churchill III was founded as a special purpose vehicle in October 2019. On February 14, 2020, Churchill III completed its initial public offering and sold 110 million units of ownership to investors for gross proceeds of $ 1.1 billion (the “Initial Public Offering”). According to the IPO prospectus, Churchill III had to acquire a target business with a total market value of at least 80% of the assets held in trust from the IPO proceeds within two years of the IPO.
On September 18, 2020, Churchill III issued the Power of Attorney for the Combination requesting shareholders to vote for the deal (the “Agent”). The proxy stated that Churchill identified MultiPlan as a potential acquisition target shortly after going public. On the basis of the proxy, the shareholders approved the merger at an extraordinary general meeting on October 7, 2020. Due to the proxy, the shareholders were given the opportunity to return their shares in full in accordance with their rights. The shares subject to redemption were valued in the proxy at around USD 10 per share.
The story goes on
On November 11, 2020, one month after the merger was completed, Muddy Waters published a report on Churchill III entitled “MultiPlan: Private Equity Necrophilia Meets The Big Money Heist 2020” based on extensive non-public sources such as interviews with former MultiPlan – Executives and other industry experts as well as proprietary analysis. The report partially revealed the following: (1) MultiPlan was about to lose its largest customer, UnitedHealthcare, which estimated Churchill III cost up to 35% of its sales and 80% of its indebted free cash flow in two years; (2) MultiPlan found itself in significant financial decline due to its fundamentally flawed business model that benefited from excessively high healthcare costs. (3) UnitedHealthcare allegedly launched a competitor, Naviguard, to reduce its business with MultiPlan and bring into the company the overpriced and conflicting services offered by MultiPlan. and (4) MultiPlan had suffered from significant undisclosed pricing pressures that halved the “take rate” charged by customers in some cases and mistakenly characterized revenue declines as “idiosyncratic” when in fact it was persistent, negative Price trends affecting MultiPlan’s business.
After this news, the price of Churchill III’s securities fell. By November 12, 2020, the price of Churchill III’s Class A common stock had dropped to a low of just $ 6.12 per share, nearly 40% below the price at which shareholders would have their shares at the time of the stockholders’ vote on the combination can return.
MultiPlan investors can attempt to be appointed as the class lead plaintiff by April 26, 2021 at the latest by Kessler Topaz Meltzer & Check, LLP, or other attorney, or they can choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
The source version of this press release can be found at https://www.newsfilecorp.com/release/79168