San Francisco, Calif .– (Newsfile Corp. – Feb.26, 2021) – Hagens Berman encourages Clover Health Investments, Corp. investors. (NASDAQ: CLOV) to file their losses now. A securities fraud class lawsuit has been filed and certain investors may have valuable claims.
Classes: October 6, 2020 – February 3, 2021
Lead plaintiff deadline: April 6, 2021
Contact an attorney now: [email protected]
Class action lawsuit against securities of Clover Health Investments, Corp. (CLOV):
The complaint alleges that throughout the classroom, defendants misrepresented and concealed the following: (1) Clover’s Clover Assistant platform was investigated by the Department of Justice on at least 12 questions, ranging from setbacks to marketing practices to undisclosed deals with third parties were enough. (2) The DOJ’s investigation posed an existential risk to Clover as it derives most of its revenues from Medicare. and (3) Clover’s sales were driven by an important undisclosed related party deal and misleading marketing to the elderly, not alleged “best-in-class” technology.
Investors allegedly began learning the truth on February 4, 2021 when Hindenburg Research released a scathing report on the company alleging that Clover’s sales were the result of misleading marketing activities aimed at the elderly and an important, undisclosed related party deal .
Hindenburg alleged that Clover kept quiet about the DOJ’s active investigation into the company for illegal setbacks and misleading marketing practices. Hindenburg claimed the company used a subsidiary, Seek Insurance Services, to mislead seniors into purchasing Clover plans. Citing reports from former employees, Hindenburg said, “Much of Clover’s sales are driven by an important, undisclosed relationship between Clover and Clover [B&H Assurance,] an outside brokerage firm controlled by Clovers Sales Director (Hiram Bermudez). “
The story goes on
The next day, Clover admitted that he was fully aware of the DOJ’s investigation and Bermudez’s involvement in B&H Assurance. The company also announced that it had received a letter from the SEC following the Hindenburg report.
In the news, Clover stock fell sharply.
“We’re focusing on investor losses and whether Clover has misled investors about the legality of its business practices and related financial reporting,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you’ve invested in Clover stock, click here to discuss your legal 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% for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]
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The source version of this press release can be found at https://www.newsfilecorp.com/release/75625