Lawsuit filed for Investors in shares of Clover Health Investments, Corp. (NASDAQ: CLOV)

An investor, who purchased shares of Clover Health Investments, Corp. (NASDAQ: CLOV), filed a lawsuit in the U.S. District Court for the Middle District of Tennessee over alleged violations of Federal Securities Laws by Clover Health Investments, Corp. (formerly Social Capital Hedosophia Holdings Corp. III).

Investors who purchased shares of Clover Health Investments, Corp. (formerly Social Capital Hedosophia Holdings Corp., NASDAQ: CLOV, CLOVW, NYSE: IPOC), have certain options and for certain investors are short and strict deadlines running. Deadline: April 6, 2021. NASDAQ: CLOV, CLOVW, NYSE: IPOC investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On January 7, 2021, Clover Health Investments, Corp merged with SPAC Social Capital Hedosophia Holdings Corp. III and began to trade under the symbol CLOV on NASDAQ.

On February 4, 2021, a report was published entitled "Clover Health: How the ‘King of SPACs’ Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation[.]" The report alleged, among other things, that "Clover has not disclosed that its business model and its software offering, called the Clover Assistant, 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."

According to the complaint the plaintiff alleges that the defendants between October 6, 2020 and February 4, 2021 and in the registration statement issued in connection with the December 2020 Merger of Clover and Social Capital III made false and/or misleading statements and/or failed to disclose that Clover’s Clover Assistant platform 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, that the DOJ’s investigation presented an existential risk to the Company, since it derives most of its revenues from Medicare, that Clover’s sales were driven by a major undisclosed related party deal and misleading marketing targeting the elderly, not its purported “best-in-class” technology, that a significant portion of Clover’s sales were by way of an undisclosed relationship between Clover and an outside brokerage firm controlled by Clover’s Head of Sales, and that as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Those who purchased shares of Clover Health Investments, Corp. (NASDAQ: CLOV) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.