CLOV EQUITY ALERT: Kessler Topaz Meltzer & Check, LLP Announces that a Securities Fraud Class Action Lawsuit was filed on Behalf of Investors of Clover Health Investments, Corp. | News
RADNOR, Pa., March 6, 2021 / PRNewswire / – Kessler Topaz Meltzer & Check, LLP’s law firm, recalls that Clover Health Investments, Corp. (NASDAQ: CLOV) (“Clover”) a class action lawsuit was filed for securities fraud in purchased or acquired publicly traded Clover securities between October 6, 2020 and February 4, 2021including (the “Class Period”) and / or Clover Securities purchased or acquired in accordance with or traceable in accordance with the Clover Registration Statement and Prospectus published in connection with the December 2020 Merger.
Investor Warning: Investors who have bought or acquired publicly traded Clover securities during the lesson period, not later than April 6, 2021try to be appointed as the plaintiff’s principal representative of the class. 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; per email to email@example.com; or click https://www.ktmc.com/clover-health-investments-corp-securities-class-action?utm_source=PR&utm_medium=link&utm_campaign=clover
According to the complaint, Clover offers health insurance benefits. Clover was floated on the stock exchange through a reverse merger with IPOC, a Special Purpose Acquisition Company (the “Business Combination”). Prior to the business combination, IPOC was listed on the New York Stock Exchange. The lesson begins on October 6, 2020when Clover issued a press release announcing its intention to merge with IPOC to become a public company. On 20th October 2020Clover filed his registration statement and preliminary proxy statement / prospectus on a Form S-4 with the SEC (the “Registration Statement”). The registration statement was changed on December 9, 2020 and December 10, 2020and was declared effective 11th December, 2020. The registration statement touted Clover’s growth as strong and organic.
On February 4, 2021Prior to the Market Hours, Hindenburg Research released a research report showing that Clover’s flagship platform, Clover Assistant, was the subject of an investigation by the US Department of Justice (“DOJ”) on a variety of topics, including illegal setbacks, marketing practices and undisclosed transactions with related parties. Hindenburg found that Clover’s sales growth was not driven by technology but rather by misleading sales practices. After this news, Clover Common Stock (CLOV) fell $ 1.72 per share or 12.3% to close at $ 12.23 per share on February 4, 2021and Clover Warrants (CLOVW) fell $ 0.18 per warrant or 5% $ 3.39 per arrest warrant February 4, 2021.
On February 5, 2021Before the market opened, Clover filed a Form 8-K stating that the SEC was “conducting an investigation and requested that documents and data be retained for the period from.” January 1, 2020in relation to certain matters referred to in the [Hindenburg Research report]”After this news, Clover Common Stock (CLOV) fell $ 0.53 per share or 4.3% during intraday trading on February 5, 2021and Clover Warrants (CLOVW) fell $ 0.28 per warrant or 8.2% during intraday trading on February 5, 2021.
The complaint alleges that throughout the classroom, the defendants made false and / or misleading statements and / or failed to disclose that: (1) Clover from the DOJ on at least 12 questions ranging from illegal kickbacks to marketing practices; actively investigated undisclosed related party transactions; (2) The DOJ’s investigation posed an existential risk to Clover as it derives most of its revenues from Medicare. (3) Clover’s sales were driven by an important undisclosed related party deal and misleading marketing to the elderly, not alleged “best-in-class” technology. (4) A significant portion of Clover sales came from an undisclosed relationship between Clover and a brokerage firm controlled by Clover’s sales director. and (5) as a result, defendants’ statements about their business, operations and prospects were materially false and misleading and / or were unfounded.
Klee investors can not later than April 6, 2021, attempt to be appointed plaintiff’s principal representative of the class 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 collected billions of dollars on behalf of institutional and individual investors The United States and all over 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)
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