| COMPANY |
Clover Health Investments, Corp. |
| COURT |
United States District Court for the Middle District of Tennessee |
| CASE NUMBER |
21-cv-00096 |
| JUDGE |
The Honorable Aleta A. Trauger |
| CLASS PERIOD |
October 6, 2020 and February 4, 2021 |
| SECURITY TYPE |
All Securities |
Case Background:
This is a federal securities class action on behalf of those who purchased or otherwise acquired Clover Health Investments, Corp. (“Clover”) securities (including Clover warrants) between October 6, 2020, and February 3, 2021, both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Clover was under active investigation by the DOJ for at least 12 issues ranging from illegal kickbacks, to marketing practices, to undisclosed related-party deals; (2) the DOJ’s investigation presented an existential risk to Clover, since it derives most of its revenues from Medicare; (3) 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; (4) a significant portion of Clover sales were from an undisclosed relationship between Clover and a brokerage firm controlled by Clover’s Head of Sales; and (5) as a result, the defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis.
Current Status of Case:
On May 26, 2023, the Court issued an Order granting Preliminary Approval of Class Action Settlement. On October 3, 2023, the Court entered an Order granting final approval of settlement and entered final judgment. This action has concluded.
The deadline to file a claim is October 9, 2023. You may find additional information regarding the terms of the settlement and claim filing process at https://www.cloverhealthsecuritieslitigation.com/ or by calling JND Legal Administration at 877-381-0387.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.