EQUITY ALERT: Rosen Law Firm Files Securities Class Action Lawsuit Against MultiPlan Corporation f/k/a Churchill Capital Corp. III – MPLN, MPLN.WS, CCXX, CCXX.WS, CCXX.U |
NEW YORK – (BUSINESS WIRE) – Nov. June 2021–
Rosen Law Firm, a global investor rights law firm, has announced that it has acted on behalf of the buyers of the securities of MultiPlan Corporation f / k / a Churchill Capital Corp. III (NYSE: MPLN, MPLN.WS, CCXX, CCXX.WS, CCXX.U): (i) between July 12, 2020 and November 10, 2020 inclusive (the “Class Period”); and (ii) all holders of Churchill III Class A common stock arising through the merger of Churchill III with and the acquisition of Polaris Parent Corp. and whose consolidated subsidiaries (collectively “MultiPlan”) have voting rights, which completed in October 2020 (the “Merger”). The lawsuit seeks to seek damages for MultiPlan investors under federal securities laws.
According to the lawsuit, throughout the class action period, defendants made false and / or misleading statements and / or failed to disclose: (1) MultiPlan lost tens of millions of dollars in sales and revenue to Naviguard, a competitor founded by one of the MultiPlan companies became largest customer, UnitedHealthcare, threatening up to 35% of company revenue and 80% of leveraged cash flows by 2022; (2) Declines in sales and revenues in the quarters prior to the merger were not due to the “idiosyncratic” customer behavior described, but rather to a fundamental deterioration in demand for MultiPlan’s services and increased competition, as payers developed competing services and looked for alternatives to Elimination of excessive healthcare costs; (3) MultiPlan faced considerable price pressure for its services and was forced to reduce its utilization rate significantly in the run-up to the merger of insurers who had expressed their dissatisfaction with the price and quality of MultiPlan’s services and the balanced billing practices, causing the company to reduce its take rate by up to half in some cases; (4) As a result of the foregoing, MultiPlan should continue to suffer from declines in sales and profits, increased competition and deteriorating price dynamics after the merger; (5) Because of the foregoing, MultiPlan was forced to seek continued revenue growth and improve its competitive position through costly acquisitions, including purchasing HST for $ 140 million at a premium price from a former MultiPlan manager just a month later the merger; and (6) as a result of the foregoing, Churchill III investors had overpaid to acquire MultiPlan as part of the merger, and MultiPlan’s business was worth far less than it was presented to investors. When the real details hit the market, the lawsuit claims that investors have suffered damage.
A related class action was filed on April 6, 2021. In this case, if you want to act as the lead plaintiff, you must call the court no later than June 7, 2021. A lead plaintiff is a representative party acting on behalf of. acts for other group members in directing the dispute. To join the litigation visit http://www.rosenlegal.com/cases-register-1983.html or to discuss your rights or interests in relation to this class action lawsuit please contact Phillip Kim, Esq . the Rosen Law Firm toll-free at 866-767-3653 or by email at email@example.com or firstname.lastname@example.org.
NO CLASS HAS BEEN CERTIFIED IN THE ABOVE PROMOTION. UNTIL A CLASS IS CERTIFIED, YOU WILL NOT BE REPRESENTED BY AN ADVISOR UNLESS YOU KEEP ONE. YOU MAY KEEP ADVISERS OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. THE ABILITY OF AN INVESTOR TO PARTICIPATE IN A POSSIBLE FUTURE RECOVERY IS NOT DEPENDENT ON SERVING AS THE LEAD PLAIN.
Rosen Law Firm represents investors around the world and focuses its practice on securities class actions and shareholder derivatives. Rosen Law Firm was ranked # 1 by ISS Securities Class Action Services for 2017 number of securities class action settlements. The firm has been ranked in the top 4 every year since 2013. The Rosen Law Firm has filed the largest class action lawsuit ever against a Chinese company. Rosen Law Firm attorneys are rated and recognized by numerous independent and reputable sources. Rosen Law Firm has secured hundreds of millions of dollars for investors. Lawyer advertising. Previous results do not guarantee a similar result.
CONTACT: Laurence Rosen, Esq.
275 Madison Avenue, 40th floor
Toll Free: (866) 767-3653
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: LEGAL SERVICES
Copyright Business Wire 2021.
PUB: 6/4/2021 10:55 p.m. / DISC: 6/4/2021 10:55 p.m.
Copyright Business Wire 2021.