SAN FRANCISCO, February 4, 2021 / PRNewswire / – Hagens Berman Calls on Clover Health Investments, Corp. Investors (NASDAQ: CLOV) urges you to file your losses now. The company is investigating possible securities fraud and certain investors may have valuable claims.
Contact an attorney now: [email protected]
Investigation by Clover Health Investments, Corp. (CLOV):
The investigation concerns whether Clover engages in illegal sales and marketing activities to induce sales growth and stock gains.
Before and after going public by a “blank check” company, Clover has fueled Medicare insurance sales growth and customer acquisition rates and touted its “best-in-class” software platform, Clover Assistant, as a driver.
But go on February 4, 2021Hindenburg Research released a damning report on the company claiming that Clover’s sales were instead the result of misleading marketing activities aimed at the elderly and an important, undisclosed contract with related parties.
In particular, Hindenburg alleges that Clover Health kept silent about the Justice Department’s active investigations into the company for activities ranging from illegal setbacks to misleading marketing practices. Hindenburg claims, among other things, that the company uses a subsidiary, Seek Insurance Services, to mislead seniors into purchasing Clover Health plans.
Citing accounts from former employees, Hindenburg also notes that “a large part of Clover’s revenue is driven by an important, undisclosed relationship between Clover and an outside brokerage firm controlled by Clover’s sales director (Hiram Bermudez). ”
In the news, the price of Clover shares was a big hit February 4, 2021.
“Our focus is on investor losses and on whether Clover has misled investors about the legality of its business practices and related financial reporting,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you’ve invested in Clover stock, click here to discuss your statutory rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about Clover should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Please call for more information Reed Kathrein at 844-916-0895 or by email to:[email protected].
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SOURCE Hagens Berman Sobol Shapiro LLP