Philadelphia, Pennsylvania–(Newsfile Corp. – March 16, 2021) – Berger Montague is investigating potential securities fraud claims against Clover Health Investments, Corp. formerly known as Social Capital Hedosophia Holdings Corp. III (NASDAQ: CLOV) (NASDAQ: CLOVW) (“Clover” or the “Company”) on behalf of investors who purchased Clover Health securities between October 6, 2020 and February 4, 2021 (the “Class Period”).
If you purchased Clover securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague’s investigation, please contact attorneys Andrew Abramowitz at email@example.com or (215) 875-3015, or Donnell Much at firstname.lastname@example.org or (215) 875-4667, or contact us at www.bergermontague.com/clover-health.
Clover provides healthcare insurance services and purports to use proprietary technology to analyze health and behavioral data. On January 7, 2021, the Company merged with Social Capital Hedosophia Holdings Corp. III, a special purpose acquisition vehicle, and began to trade under the symbol CLOV on NASDAQ.
According to a recently filed lawsuit, Clover and its senior management misled investors about the fact that it was the subject of an investigation by the U.S. Department of Justice (“DOJ”). Investors learned the truth about the Company on February 4, 2021, when Hindenburg Research published a report stating that Clover has been under active investigation by the DOJ for issues ranging from kickbacks to marketing practices to undisclosed third-party deals. Significantly, according to the suit, Clover did not reveal the existence of the DOJ inquiry prior to the merger. On this news, Clover shares fell $1.72 – or 12% – from a closing price of $13.95 on February 3, 2021 to a closing price of $12.23 on February 4, 2021.
On February 5, 2021, Clover acknowledged that it was aware of the DOJ investigation before entering into the business combination with Social Capital Hedosophia Holdings Corp. III, and also disclosed that it had received an inquiry from the U.S. Securities and Exchange Commission following publication of Hindenburg’s report.
If you purchased Clover securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is April 6, 2021. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Clover are encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
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