An investigation on behalf of investors in Clover Health Investments, Corp. (NASDAQ:CLOV) shares over potential wrongdoing at Clover Health Investments, Corp. was announced.
San Diego, CA -- (SBWIRE) -- 08/23/2022 -- An investigation was announced over potential breaches of fiduciary duties by certain directors at Clover Health Investments, Corp.
Investors who purchased shares of Clover Health Investments, Corp. (NASDAQ: CLOV) and have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On February 5, 2021, a lawsuit was filed against Clover Health Investments, Corp over alleged Securities Laws Violations. The plaintiff alleged 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.
On June 28, 2021, an amended Complaint was filed and on August 27, 2021, the defendants filed a Motion to Dismiss the amended Complaint.
On February 28, 2022, the Court issued an Order denying Defendants' Motion to Dismiss.
Those who purchased shares of Clover Health Investments, Corp. (NASDAQ: CLOV) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About The Shareholders Foundation
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