SAN FRANCISCO, November 13, 2020 / PRNewswire / – Hagens Berman urges MultiPlan Corporation (NYSE: MPLN) investors with significant losses to report their losses now. The company is investigating possible securities fraud and certain investors may have valuable claims.
Relevant holding period: Before November 11, 2020
Contact an attorney now: [email protected]
MultiPlan Corporation (MPLN) investigation:
The investigation focuses on MultiPlan’s financial disclosures, which arise through and through its merger and IPO with SPAC company Churchill Capital Corp. III have led.
In particular, Hagens Berman examines the statements made by the company and its sponsor regarding the customer base and revenue of MultiPlan.
On November 11, 2020Muddy Waters Capital released a scathing report entitled “MultiPlan: Private Equity Necrophilia Meets The Big Money Heist For 2020”, based in part on interviews with former MultiPlan executives.
Muddy Waters notes, among other things: (1) The company and its sponsors have kept silent about the impending loss of MultiPlan’s largest customer (“UnitedHealthcare” or “UHC”) due to UHC’s creation of a competitor (“Naviguard”) who offers significantly less Prices and fewer conflicts of interest; (2) MultiPlan’s financial data “was developed financially to hide the deterioration of its business.” and (3)[w]We know that in 2018 MPLN released revenue reserves that dropped from roughly 30% to 10% of revenue. We believe MPLN saw EBITDA growth in 2018 with declining sales. ”
In conclusion, Muddy Waters notes that “MPLN paints a rosy picture of its outlook, but it does not match the facts: sales peaked in 2017 and Naviguard is never mentioned as a threat by management” and “we are concerned that the strategy is of management plays a role. ” the potential to bankrupt MPLN. ”
“We are focused on investor losses and whether MultiPlan has misrepresented its customer base and earnings,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a MultiPlan investor and experience significant losses or have knowledge that may aid the company’s investigation, click here to discuss your statutory rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about MultiPlan 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. Call for more information Reed Kathrein at 844-916-0895 or by email to:[email protected].
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities across the country and eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
SOURCE Hagens Berman Sobol Shapiro LLP