Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against MultiPlan Corporation

RADNOR, Pa., March 8, 2021 / PRNewswire / – The law firm of Kessler Topaz Meltzer & Check, LLP advises investors that there are actions against MultiPlan Corporation (NYSE: MPLN; MPLN.WS) (“MultiPlan”) on behalf of: (1) those who own MultiPlan Securities between bought or acquired 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 through Churchill III October 2020 (the “Fusion”).

Investor deadline reminder: Investors who bought or acquired MultiPlan securities during the class period can do so no later than April 26, 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 protected];; 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 in October 2019 as a special acquisition vehicle. On February 14, 2020Churchill III completed its IPO and sold 110 million property units to investors for gross proceeds of $ 1.1 billion (the “IPO”). 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, 2020Churchill III issued the Power of Attorney for the Combination calling on shareholders to vote for the deal (the “Agent”). The agent explained this Churchill identified MultiPlan as a potential acquisition target shortly after the IPO. On the basis of the proxy on October 7, 2020The shareholders approved the merger at an extraordinary general meeting. 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 repayment were valued in the proxy at approx $ 10 per share.

On November 11, 2020One month after the completion of the merger, 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 including interviews with former MultiPlan executives and other industry experts and 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 resulted in the “take rate” charged by customers in some cases being cut in half and revenue declines being mistaken for “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, 2020The price of Churchill III’s Class A common stock fell to a low of only $ 6.12 per share almost 40% below the price at which shareholders could have returned their shares at the time of the shareholders’ vote on the merger.

MultiPlan investors can do so no later than April 26, 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.

CONTACT:
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)
[email protected]

SOURCE Kessler Topaz Meltzer & Check, LLP

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