Kaskela Law LLC Announces Shareholder Class Action Lawsuit Against MultiPlan Corp. (MPLN, CCXX) and Encourages Investors to Contact the Firm
PHILADELPHIA, PA / ACCESSWIRE / March 3, 2021 / Kaskela Law LLC announces that a class action lawsuit has been filed against MultiPlan Corporation (“MultiPlan” or the “Company”) (NYSE: MPLN), formerly known as Churchill Capital Corp. III (“Churchill III”) (NYSE: CCXX)) on behalf of investors who purchased or acquired MPLN or CCXX securities between July 12, 2020 and November 10, 2020 (the “Class Period”).
Churchill III was founded in October 2019 as a SPAC (Special Purpose Acquisition) vehicle and announced on July 12, 2020 that it would be combined with the privately owned MultiPlan. According to the complaint, Churchill III filed a defective letter of attorney with the SEC on September 18, 2020, in connection with the proposed combination, which contained numerous materially false and misleading statements and omissions. Based on the flawed proxy statement, Churchill III investors approved the business combination on October 7, 2020.
On November 11, 2020, one month after the merger was completed, Muddy Waters released a report entitled “MultiPlan: Private Equity Necrophilia Meets The Big Money Heist 2020”. The report found, among other things: (i) MultiPlan was about to lose its largest customer, UnitedHealthcare, which is estimated to have cost Churchill III up to 35% of its sales and 80% of its indebted free cash flow in two years; (ii) MultiPlan has found itself in significant financial decline due to its fundamentally flawed business model, which benefited from excessively high healthcare costs. (iii) UnitedHealthcare allegedly created a competitor, Naviguard, to reduce its business with MultiPlan and bring into the company the overpriced and conflicting services offered by MultiPlan. and (iv) MultiPlan had suffered from significant undisclosed pricing pressures which resulted in the “take rate” charged by customers in some cases being cut in half and revenue declines being mistakenly labeled “idiosyncratic” when in fact it was persistent, negative Price trends affecting MultiPlan’s business. Following this report, MultiPlan’s shares have declined significantly, currently trading below $ 7.00 per share.
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MultiPlan investors who purchased or acquired CCXX securities prior to September 14, 2020 are requested to contact us at (484) 258-1585 or email at email@example.com or online at Kaskela Law LLC (D. Seamus Kaskela, Esq.) Contact Kaskela Law LLC for more information about this promotion and your legal rights and options at https://kaskelalaw.com/case/multiplan-corp/.
Kaskela Law LLC only represents investors in the areas of securities fraud, corporate governance, and merger and acquisition disputes. For more information about Kaskela Law LLC, please visit www.kaskelalaw.com
D. Seamus Kaskela, Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
SOURCE: Kaskela Law LLC
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