Kessler Topaz Meltzer & Check, LLP Reminds MultiPlan Corporation Investors of Deadline in Securities Fraud Class Action Lawsuit
RADNOR, Pa., April 14, 2021 (GLOBE NEWSWIRE) – Kessler Topaz Meltzer & Check, LLP’s law firm reminds investors of MultiPlan Corporation (NYSE: MPLN; MPLN.WS) (“MultiPlan”) f / k / a Churchill Capital Corp. III (“Churchill III”) that a class action lawsuit for securities fraud has been filed in the US District Court for the Southern District of New York on behalf of: (1) persons who have bought or acquired MultiPlan securities between July 12, 2020 and November 10, 2020including (the “Class Period”); and (2) all holders of Class A common stock of Churchill Capital Corp. III (“Churchill III”) entitled to announce the merger and acquisition of Polaris Parent Corp. and its consolidated subsidiaries by Churchill III in October 2020 (the “Merger”).
Deadline of the main plaintiff: April 26, 2021
Churchill III was founded in October 2019 as a dedicated acquisition vehicle. 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.
The complaint alleges that Muddy Waters published a report on Churchill III entitled “MultiPlan: Private Equity Necrophilia Meets The Big Money Heist 2020” on November 11, 2020, one month after the merger was closed, based on extensive private equity Information was based on 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 suffered from significant undisclosed pricing pressures that cut the take rate in some cases charged by customers in half and mistakenly labeled revenue declines as “idiosyncratic” when in fact it was at ongoing expense were due. negative price trends affecting MultiPlan’s business.
The story goes on
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 by April 26, 2021 at the latest, attempt to be named the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other lawyer, or 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)