NEW YORK, March 18, 2021 /PRNewswire/ — Wolf Popper LLP announces that federal securities class action lawsuits have been filed in the U.S. District Court for the Middle District of Tennessee against Clover Health Investments, Corp. (NASDAQ: CLOV), f/k/a Social Capital Hedosophia Holdings Corp. III (SCH), and certain of Clover’s officers and directors, on behalf of investors who purchased or acquired Clover securities between October 6, 2020 and February 4, 2021.
The deadline for Clover investors to seek appointment as the lead plaintiff is April 6, 2021.
On February 4, 2021, Hindenburg Research issued a report alleging that Clover 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, according to a Civil Investigative Demand (similar to a subpoena) [Hindenburg] obtained.”
On February 4, 2021, Clover’s stock price fell over 12% and closed at $12.23 per share.
The complaints allege, among other things, that the defendants made false and misleading statements or failed to disclose that: (1) Clover was under active investigation by the DOJ, which put Clover’s nearly sole source of revenue from Medicare at risk; (2) Clover’s sales were driven by a major undisclosed related-party deal and misleading marketing; and (3) a significant portion of Clover sales were from an undisclosed relationship between Clover and a brokerage firm controlled by Clover’s Head of Sales.
Investors who have lost over $50,000 trading in SCH and Clover securities and who would like to discuss the litigations should contact Joshua Ruthizer at (212) 451-9668, (877) 370-7703, or [email protected].
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper’s reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm’s website at www.wolfpopper.com.
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Wolf Popper LLP
Joshua W. Ruthizer
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New York, NY 10022
Tel.: (212) 451-9668
Tel.: (877) 370-7703
Email: [email protected]
SOURCE Wolf Popper LLP