Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Middle District of Tennessee on behalf of shareholders of Clover Health Investments, Corp. who purchased shares between October 6, 2020 and February 4, 2021.
Clover and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 7, 2021, the Company completed its merger with Social Capital Hedosophia Holdings Corp. III and began to trade on the NasdaqGS under “CLOV.” On February 4, 2021, a report issued by Hindenburg Research revealed that the Company was under active investigation by the U.S. Department of Justice prior to the merger relating to potential kickbacks and marketing practices, which was not disclosed by the Company. Then, on February 5, 2021, the Company acknowledged that it was aware of the DOJ investigation before entering into the merger, and also disclosed the receipt of an SEC inquiry following publication of Hindenburg’s report.
On this news, the price of Clover’s shares plummeted.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until April 6, 2021 to request that the court appoint them lead plaintiff.