MULTIPLAN ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against MultiPlan Corporation and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who bought MultiPlan Corporation (NYSE) : MPLN) securities between July 12, 2020 and November 10, 2020 inclusive (the “Class Period”) and any holders of Class A common stock of Churchill III who are entitled to participate in the merger and acquisition of Polaris Parent Corp. and its acquisition by Churchill III consolidated subsidiaries (collectively “MultiPlan”), which completed in October 2020 (the “Merger”). Investors have until April 26, 2021 to apply to the court to be named the lead plaintiff in the lawsuit.
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Churchill III is a blank check company that has partnered with MultiPlan, a healthcare costs specialist.
In July 2020, Churchill III announced that it had entered into a preliminary agreement to merge with MultiPlan, with shareholder approval. MultiPlan is a New York-based provider of end-to-end expense management solutions for the US healthcare industry.
The class action lawsuit against Multiplan alleges that the defendants made materially false and misleading statements about the business, operations and prospects of MultiPlan in connection with the merger and during the collection period.
On November 11, 2020 – just one month after the merger was completed – Muddy Waters released a report on Churchill III entitled “MultiPlan: Private Equity Necrophilia Meets The Big Money Heist 2020” (the “Muddy Waters Report”). Among other things, the Muddy Waters Report revealed that MultiPlan was about to lose its largest customer, UnitedHealthcare, which was estimated to cost the company up to 35% of its revenue and 80% of its indebted free cash flow within two years.
As a result of this news, the price of Churchill III 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 bought their shares at the time of the shareholders’ vote Merger could have given back.
If you purchased MultiPlan securities during the class period or were a Class A common stockholder of Churchill III who was entitled to vote on the Merger and suffered a loss, are a long term shareholder, have information and would like to learn more about those claims, If you have any questions about this announcement or your rights or interests in relation to these matters, please email Brandon Walker, Melissa Fortunato, or Marion Passmore via email at email@example.com or by phone at (212 ) 355-4648 or by filling out this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.