SAN FRANCISCO, CA – (February 24, 2021) – The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Clover Health Investments, Corp. (“Clover” or the “Company”) (NASDAQ: CLOV) between October 6, 2020 and February 4, 2021, inclusive (the “Class Period”), including investors who purchased or otherwise acquired Clover securities pursuant or traceable to the Company’s registration statement and prospectus in connection with its merger with Social Capital Hedosophia Holdings Corp. III (“SCH”) in or around December 2020.
If you purchased or otherwise acquired Clover securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 6, 2021. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Clover investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Clover Securities Class Litigation
Clover, headquartered in Franklin, Tennessee, is a health insurance services company that primarily provides Medicare Advantage healthcare plans for seniors. On January 7, 2021, Clover merged with SCH, a publicly listed special-purpose acquisition company, and began to trade under the symbol “CLOV.” The action alleges that, during the Class Period, defendants made false and/or misleading statements and failed to disclose to investors that (1) Clover’s Clover Assistant platform was under active investigation by the Department of Justice (“DOJ”) for at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals; (2) the DOJ’s investigation presented a risk to the Company, since it derives most of its revenues from Medicare; (3) Clover’s sales were driven by a major undisclosed related party deal and misleading marketing targeting the elderly, not its purported “best-in-class” technology; and (4) a significant portion of Clover’s sales were derived from an undisclosed relationship between Clover and an outside brokerage firm controlled by Clover’s Head of Sales.
On February 4, 2021, Hindenburg Research published a report revealing the existence of an active DOJ investigation of the Company for issues including kickbacks, marketing practices, undisclosed third-party deals, and Clover’s software “Clover Assistant” that purportedly serves “low-income and often overlooked communities.” On this news, Clover’s stock price fell $1.72, or approximately 12.3%, from its closing price of $13.95 on February 3, 2021, to close at $12.23 on February 4, 2021.
The following day, on February 5, 2021, Clover disclosed that it was aware of the DOJ investigation prior to its merger with SCH, and that it had received an inquiry from the U.S. Securities and Exchange Commission following publication of Hindenburg’s report.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP