| COMPANY |
Multiplan Corporation |
| COURT |
United States District Court for the Eastern District of New York |
| CASE NUMBER |
21-cv-031861 |
| JUDGE |
The Honorable Rachel P. Kovner |
| CLASS PERIOD |
July 12, 2020 - November 10, 2020 |
| SECURITY TYPE |
Common Stock |
Case Background:
Churchill III was formed in October 2019 as a special purpose acquisition vehicle. On February 14, 2020, Churchill III completed its initial public offering, selling 110 million ownership units to investors for gross proceeds of $1.1 billion (the “IPO”). Pursuant to the IPO prospectus, Churchill III was required to acquire a target business with an aggregate fair market value of at least 80% of the assets held in trust from the IPO proceeds and to do so within two years of the February 2020 IPO.
The complaint alleges that the Proxy failed to disclose among other things that: (a) MultiPlan was losing tens of millions of dollars in sales and revenues to Naviguard, which threatened up to 35% of Churchill III’s sales and 80% of its levered cash flows by 2022; (b) sales and revenue declines in the quarters leading up to the Merger were not due to “idiosyncratic” customer behaviors as represented, but rather due to a fundamental deterioration in demand for MultiPlan’s services and increased competition; (c) MultiPlan was facing significant pricing pressures for its services and had been forced to materially reduce its take rate in the lead up to the Merger by insurers; (d) as a result of the foregoing, MultiPlan was set to continue to suffer from revenues and earnings declines, increased competition and deteriorating pricing dynamics fllowing the Merger; and (e) as a result of the foregoing, Churchill III investors had grossly overpaid for the acquisition of MultiPlan in the Merger, and MultiPlan’s business was worth far less than represented to investors.
Current Status of Case:
On September 14, 2021, Lead Plaintiff filed a Notice of Voluntary Dismissal against all Defendants. On September 15, 2021, the Court dismissed the case without prejudice. This action has concluded.
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.