NEW YORK, NY / ACCESSWIRE / February 13, 2021 / Pomerantz LLP is investigating claims on behalf of investors of Clover Health Investments Corporation ("Clover" or the "Company") (NASDAQ:CLOV). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Clover and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 4, 2021, Hindenburg Research published a report entitled "Clover Health: How the ‘King of SPACs' Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation." The report alleged that Clover "has not disclosed that its business model and its software offering, called the Clover Assistant, are under active investigation by the Department of Justice (DOJ), which is investigating at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals[.]" The report further noted that "multiple former [Clover] employees explained that much of Clover's sales are fueled by a major undisclosed relationship between Clover and an outside brokerage firm controlled by Clover's Head of Sales, Hiram Bermudez."
On this news, Clover's stock price fell $1.72 per share, or 12.33%, to close at $12.23 per share on February 4, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP