Investigation of Clover Health Investments

Clover Health Investment, Corp.  (CLOV) Misled Shareholders Ahead of Going Public           

On October 6, 2020, the Company issued a press release announcing plans to become a publicly traded company via a merger with Social Capital Hedosophia Holdings Corp. III (“SCH”).  SCH was a special purpose acquisition company (SPAC) that traded on the NYSE under IPOC.

On January 7, 2021, Clover and SCH announced it had completed the business combination and that shares of Clover would trade on NASDAQ under ticker symbol CLOV the next day.  On February 4, 2021, Hindenberg Research published a report revealing “how Clover Health and its Wall Street celebrity promoter, Chamath Palihapitiya, misled investors about critical aspects of Clover’s business in the run-up to the company’s SPAC go-public transaction last month.”  Notably, Hindenberg revealed that Clover’s business model and software offering “are under active investigation by the Department of Justice (DOJ), which is investigating at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals.”  On this news, shares of Clover dropped more than 12% from $13.95 on February 3, 2021, to $12.23 on February 4, 2021, representing a loss of $700 million in market capitalization.  The stock continued to tumble and now trades at just $8.40.

Clover Health Investment, Corp. (CLOV) Shareholders Have Options

All representation is on a contingency fee basis.  Shareholders pay no fees or expenses.

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