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GlobeNewswire
INVESTOR REMINDER: Kessler Topaz Meltzer & Check, LLP alerts shareholders of securities fraud class action lawsuit against Clover Health Investments, Corp. (CLOV)
RADNOR, Pa., March 16, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Middle District of Tennessee v Clover Health Investments, Corp. (NASDAQ: CLOV) (“Clover”) on behalf of those who purchased or acquired Clover listed securities between October 6, 2020 and February 4, 2021 inclusive (the “Class Period”), and / or purchased or acquired Clover securities in accordance with or traceable to the Clover registration statement and prospectus issued in connection with the December 2020 merger. Lead applicant deadline: April 6, 2021 Website: https://www.ktmc.com / clover-health-investments-corp-securities-class-action? utm_source = PR & utm_medium = link & utm_campaign = clover Contact: James Maro, Esq. (484) 270-1453 Adrienne Bell, Esq. (484) 270-1435 Toll Free (844) 887-9500 According to the complaint, Clover provides health insurance services. Clover was made public in a reverse merger with IPOC, a special purpose acquisition company (the “Business Combination”). Prior to the business combination, the IIPC was traded on the New York Stock Exchange. The recourse period begins on October 6, 2020, when Clover issued a press release announcing its intention to become a public company through a merger with IPOC. On October 20, 2020, Clover filed its registration statement and Proxy Circular / Preliminary Prospectus on Form S-4 with the SEC (the “Registration Statement”). The registration statement was amended on December 9, 2020 and December 10, 2020 and was declared effective on December 11, 2020. The registration statement presented Clover’s growth as strong and organic. On February 4, 2021, before market hours, Hindenburg Research released a research report which found that Clover’s flagship platform, Clover Assistant, was under investigation by the US Department of Justice (” DOJ ”) for a variety of issues, including illegal bribes. , marketing practices and undisclosed related party transactions. Hindenburg discovered that Clover’s sales growth was driven not by technology, but by deceptive sales practices. Following this news, Clover common stock (CLOV) fell $ 1.72 per share, or 12.3%, to close at $ 12.23 per share on February 4, 2021, and Clover warrants ( CLOVW) fell $ 0.18 per warrant, or 5%, to close at $ 3.39. by warrant on February 4, 2021. On February 5, 2021, before the market opened, Clover filed a Form 8-K revealing that the SEC was conducting an “investigation and requesting retention of documents and data for the period of January 1 2020, to the present, regarding certain matters referred to in the [Hindenburg Research report]. Following this news, Clover common stock (CLOV) fell $ 0.53 per share, or 4.3% in intraday trading on February 5, 2021, and Clover (CLOVW) warrants fell by 0. USD 28 per warrant, or 8.2% in intraday trading on February 5, 2021. The complaint alleges that throughout the appeal period, the Defendants made false and / or misleading statements and / or omitted to disclose that: (1) Clover was under active DOJ investigation for at least 12 issues ranging from illegal bribes to marketing practices. , transactions between undisclosed related parties; (2) the DOJ’s investigation posed an existential risk for Clover, as he derives most of his income from Medicare; (3) Clover’s sales were driven by a large, undisclosed related party agreement and deceptive marketing targeting seniors, not its so-called “best-in-class” technology; (4) a significant portion of Clover’s sales arose from an undisclosed relationship between Clover and a brokerage firm controlled by Clover’s sales manager; and (5) therefore, the defendants’ statements about its business, activities and prospects were materially false and misleading and / or lacked reasonable basis. Clover investors may, no later than April 6, 2021, apply to be appointed as lead representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another attorney, or may elect to do nothing. and remain an absent member of the group. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. To be appointed as the Principal 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 will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as a principal applicant. Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country relating to securities fraud, breaches of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors in the United States and around the world. The company represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of public funds). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com. CONTACT: Kessler Topaz Meltzer & Check, LLPJames Maro, Jr., Esq.Adrienne Bell, Esq. 280 King of Prussia RoadRadnor, PA 19087 (844) 887-9500 (toll free) [email protected]
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