NEW YORK, NY / ACCESSWIRE / June 6, 2021 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies. Shareholders who purchased shares in the following companies during the dates listed are encouraged to contact the firm regarding possible Lead Plaintiff appointment. Appointment as Lead Plaintiff is not required to partake in any recovery.
Multiplan Corporation F/K/A Churchill Capital Corp. Iii (NYSE:MPLN)
Investors Affected : July 12, 2020 - November 10, 2020
A class action has commenced on behalf of certain shareholders in Multiplan Corporation F/K/A Churchill Capital Corp Iii. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (a) MultiPlan was losing tens of millions of dollars in sales and revenues to Naviguard, a competitor created by one of MultiPlan's largest customers, UnitedHealthcare, which threatened up to 35% of the Company'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, as payors developed competing services and sought alternatives to eliminating excessive healthcare costs; (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, who had expressed dissatisfaction with the price and quality of MultiPlan's services and balanced billing practices, causing the Company's to cut its take rate by up to half in some cases; (d) as a result of (a)-(c) above, MultiPlan was set to continue to suffer from revenues and earnings declines, increased competition and deteriorating pricing dynamics following the Merger; (e) as a result of (a)-(d) above, MultiPlan was forced to seek continued revenue growth and to improve its competitive positioning through pricey acquisitions, including through the purchase of HST for $140 million at a premium price from a former MultiPlan executive only one month after the Merger; and (f) as a result of (a)-(e) above, 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.
Shareholders may find more information at https://securitiesclasslaw.com/securities/multiplan-corporation-f-k-a-churchill-capital-corp-iii-loss-submission-form/?id=16592&from=1
Verus International, Inc. (OTC PINK:VRUS)
Investors Affected : June 17, 2019 - November 8, 2020
A class action has commenced on behalf of certain shareholders in Verus International, Inc. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (i) Verus lacked the requisite resources, infrastructure and/or expertise to exploit its Big League Foods brand and its MLB license; (ii) the company's issues in production ramp-up were not fully resolved to enable the company to fulfill customer orders; (iii) as a result, the company's prospects and outlook were not as represented; (iv) the company's internal controls for financial reporting and accounting were not sufficient with specific respect to stock-based compensation and classification of equity instruments; (v) as a result, the company's financial results, outlook and prospects were materially worse than represented; and (vi) as a result of the foregoing, the company's public statements were materially false and misleading at all relevant times.
Shareholders may find more information at https://securitiesclasslaw.com/securities/verus-international-inc-loss-submission-form/?id=16592&from=1
Frequency Therapeutics, Inc. (NASDAQ:FREQ)
Investors Affected : November 16, 2020 - March 22, 2021
A class action has commenced on behalf of certain shareholders in Frequency Therapeutics, Inc. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: the Company's Phase 2a trial results failed to live up to the Company's expectations as the results revealed no discernable difference between FX-322 and the placebo. In spite of the disappointing results, the Company continued to conduct the Phase 2a study while releasing positive statements in earnings calls, press releases, SEC filings, and pharmaceutical presentations about FX-322's potential. These statements materially misled the market and artificially inflated the value of Frequency's common stock.
Shareholders may find more information at https://securitiesclasslaw.com/securities/frequency-therapeutics-inc-loss-submission-form/?id=16592&from=1
The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a Company lead to artificial inflation of the Company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
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SOURCE: The Gross Law Firm