LOS ANGELES–(Business WIRE)–The Law Offices of Frank R. Cruz announces that a class motion lawsuit has been filed on behalf of individuals and entities that bought or or else obtained Clover Well being Investments, Corp. (NASDAQ: CLOV, CLOVW) (“Clover Health” or the “Company”) f/k/a Social Funds Hedosophia Holdings Corp. III (NYSE: IPOC) (“Social Funds III”) securities: (1) among Oct 6, 2020 and February 4, 2021, inclusive (the “Class Period”) and/or (2) pursuant or traceable to the registration statement and prospectus issued in link with the December 2020 Merger of Clover and Social Capital III (the “Registration Statement”). Clover buyers have right until April 6, 2021 to file a direct plaintiff motion.
If you are a shareholder who suffered a reduction, click on here to participate.
On February 4, 2021, Hindenburg Exploration launched a report entitled “Clover Well being: How the ‘King of SPACs’ Lured Retail Traders Into a Damaged Business Going through an Active, Undisclosed DOJ Investigation[.]” The report alleged, among the other points, that “Clover has not disclosed that its business design and its program giving, called the Clover Assistant, are less than energetic investigation by the Section of Justice (DOJ), which is investigating at least 12 concerns ranging from kickbacks to promoting methods to undisclosed 3rd-party offers.”
On this news, the Company’s inventory selling price fell $1.72 for every share, or 12.3%, to shut at $12.23 per share on February 4, 2021, therefore injuring traders.
On February 5, 2021, Clover issued a response in which it admitted, amid other matters, that it was knowledgeable of the DOJ investigation. The Firm also disclosed that it experienced gained a letter from the U.S. Securities and Exchange Fee (“SEC”), indicating that it is conducting an investigation and requesting document and facts preservation from January 1, 2020 to the current.
The grievance filed alleges that through the Course Time period, Defendants made materially bogus and/or deceptive statements, as perfectly as unsuccessful to disclose material adverse specifics about the Company’s enterprise, operations, and prospects. Particularly, Defendants unsuccessful to disclose to investors that: (1) the Company’s Clover Assistant platform was less than active investigation by the DOJ for at minimum 12 challenges ranging from kickbacks to promoting techniques to undisclosed 3rd-social gathering specials (2) the DOJ’s investigation presented an existential hazard to the Company, considering the fact that it derives most of its revenues from Medicare (3) Clover’s product sales were being driven by a major undisclosed relevant bash offer and deceptive advertising concentrating on the elderly, not its purported “best-in-class” technologies (4) a major part of Clover’s product sales had been by way of an undisclosed relationship in between Clover and an outside the house brokerage organization controlled by Clover’s Head of Profits and (5) as a final result, Defendants’ statements about its company, operations, and prospective buyers, had been materially false and deceptive and/or lacked a affordable foundation at all pertinent periods.
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If you procured Clover Health and fitness securities in the course of the Class Interval, you may go the Court docket no later on than April 6, 2021 to talk to the Court docket to appoint you as lead plaintiff. To be a member of the Class you require not get any motion at this time you may possibly keep counsel of your option or choose no motion and continue to be an absent member of the Class. If you obtained Clover Overall health securities, have details or would like to learn extra about these claims, or have any questions regarding this announcement or your legal rights or interests with respect to these issues, you should make contact with Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or take a look at our web page at www.frankcruzlaw.com. If you inquire by e-mail be sure to involve your mailing address, telephone quantity, and number of shares acquired.
This push release may possibly be deemed Lawyer Promotion in some jurisdictions less than the applicable law and ethical regulations.