LOS ANGELES–(Enterprise WIRE)–Glancy Prongay & Murray LLP (“GPM”), a main countrywide shareholder legal rights regulation organization, announces that a class action lawsuit has been filed on behalf of buyers who obtained or usually obtained Clover Wellness Investments, Corp. (NASDAQ: CLOV, CLOVW) (“Clover Health” or the “Company”) f/k/a Social Capital Hedosophia Holdings Corp. III (NYSE: IPOC) (“Social Cash III”) securities: (1) involving Oct 6, 2020 and February 4, 2021, inclusive (the “Class Period”) and/or (2) pursuant or traceable to the registration assertion and prospectus issued in relationship with the December 2020 Merger of Clover and Social Capital III (the “Registration Statement”). Clover investors have until finally April 6, 2021 to file a guide plaintiff motion.
If you suffered a reduction on your Clover investments or would like to inquire about possibly pursuing promises to get better your loss less than the federal securities rules, you can submit your call information at https://www.glancylaw.com/situations/clover-overall health-investments-corp/. You can also get in touch with Charles H. Linehan, of GPM at 310-201-9150,0Toll-Absolutely free at 888-773-9224, or via electronic mail at [email protected] to study more about your rights.
On February 4, 2021, Hindenburg Study released a report entitled “Clover Overall health: How the ‘King of SPACs’ Lured Retail Traders Into a Broken Organization Dealing with an Active, Undisclosed DOJ Investigation[.]” The report alleged, among the other points, that “Clover has not disclosed that its business enterprise design and its computer software giving, known as the Clover Assistant, are underneath lively investigation by the Office of Justice (DOJ), which is investigating at least 12 troubles ranging from kickbacks to internet marketing tactics to undisclosed 3rd-party bargains.”
On this news, the Company’s stock price fell $1.72 for every share, or 12.3%, to shut at $12.23 for every share on February 4, 2021, therefore injuring investors.
On February 5, 2021, Clover issued a response in which it admitted, amongst other points, that it was mindful of the DOJ investigation. The Corporation also disclosed that it experienced been given a letter from the U.S. Securities and Trade Fee (“SEC”), indicating that it is conducting an investigation and requesting document and info preservation from January 1, 2020 to the existing.
The criticism submitted alleges that all over the Course Period of time, Defendants created materially phony and/or deceptive statements, as effectively as failed to disclose materials adverse information about the Company’s enterprise, operations, and prospective buyers. Especially, Defendants unsuccessful to disclose to buyers that: (1) the Company’s Clover Assistant system was beneath energetic investigation by the DOJ for at minimum 12 troubles ranging from kickbacks to advertising techniques to undisclosed third-celebration offers (2) the DOJ’s investigation offered an existential danger to the Business, considering the fact that it derives most of its revenues from Medicare (3) Clover’s sales had been driven by a significant undisclosed connected party offer and misleading advertising targeting the elderly, not its purported “best-in-class” know-how (4) a substantial portion of Clover’s revenue were being by way of an undisclosed partnership amongst Clover and an outdoors brokerage agency managed by Clover’s Head of Profits and (5) as a result, Defendants’ statements about its small business, operations, and potential customers, were being materially untrue and deceptive and/or lacked a affordable foundation at all pertinent periods.
If you purchased or in any other case obtained Clover securities for the duration of the Course Interval and/or pursuant or traceable to the Registration Assertion, you could move the Court docket no afterwards than April 6, 2021 to inquire the Courtroom to appoint you as lead plaintiff. To be a member of the Course you need not get any action at this time you may well retain counsel of your decision or take no motion and continue to be an absent member of the Class. If you want to discover extra about this motion, or if you have any inquiries concerning this announcement or your legal rights or passions with regard to these issues, please call Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free of charge at 888-773-9224, by email to [email protected], or stop by our site at www.glancylaw.com. If you inquire by email make sure you include things like your mailing tackle, telephone number and number of shares purchased.
This push release might be viewed as Attorney Promoting in some jurisdictions under the relevant law and moral principles.