PHILADELPHIA, April 06, 2021 (GLOBE NEWSWIRE) — Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Clover Health Investments Corp. (NASDAQ:CLOV) (“Clover” or the “Company”), formerly known as Social Capital Hedosophia Holdings Corp. III (NYSE:IPOC), on behalf of investors who purchased shares of the Company’s securities between October 6, 2020 and February 4, 2021, inclusive (the “Class Period”).
Clover stockholders who purchased or acquired CLOV or IPOC securities securities prior to November 17, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by email at firstname.lastname@example.org or online at https://kaskelalaw.com/case/clover/, for additional information about this action and their legal rights and options.
As detailed in the complaint, on February 4, 2021, Hindenburg Research published a research report that revealed that Clover’s flagship platform, Clover Assistant, was the subject of a U.S. Department of Justice (“DOJ”) investigation for a variety of issues, including illegal kickbacks, marketing practices, and undisclosed related-party transactions. Hindenburg discovered that Clover’s sales growth was not driven by technology, but by deceptive sales practices. Following this news, Clover common stock fell $1.72 per share, or over 12% in value, to close on February 4, 2021 at $12.23 per share.
The following day, Clover filed a Form 8-K disclosing that the SEC was conducting an “investigation and requesting document and data preservation for the period from January 1, 2020, to the present, relating to certain matters that are referenced in the [Hindenburg Research report].”
Clover stockholders are encouraged to contact Kaskela Law LLC for additional information about this action. Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
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