NEW YORK, NY / ACCESSWIRE / February 18, 2021 / Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Clover Health Investments Corp. ("Clover" or the "Company") (NASDAQ:CLOV) from October 6, 2020 and February 4, 2021 (the "Class Period"). The lawsuit filed in the United States District Court for the Middle District of Tennessee alleges violations of the Securities Exchange Act of 1934.
If you purchased Clover securities, and/or would like to discuss your legal rights and options please visit Clover Shareholder Class Action Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com
According to the complaint, the Defendants made materially false and misleading statements regarding the Company's business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Clover was the recipient of a Civil Investigative Demand from the DOJ; (ii) much of Clover's sales are driven by a major related party deal that Clover not only failed to disclose but took active steps to conceal; (iii) Clover's subsidiary Seek Insurance failed to disclose its relationship with Clover and misled consumers as to its purported independence; (iv) Clover's software was in fact rudimentary; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.
The truth was revealed to investors on February 4, 2021, when Hindenburg Research published a report stating that Clover had been under active investigation by the DOJ for at least 12 issues, ranging from kickbacks to marketing practices to undisclosed third-party deals. Clover had not revealed the existence of the DOJ inquiry prior to the merger.
On this news, Clover shares fell 12.3% from a closing price of $13.95 on February 3, 2021 to a closing price of $12.23 on February 4, 2021.
If you wish to serve as lead plaintiff, you must move the Court no later than April 6, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Clover securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/cloverhealthinvestmentscorp-clov-shareholder-class-action-lawsuit-stock-fraud-360/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2020 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
CONTACT:
Matthew E. Guarnero
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
MGuarnero@bernlieb.com
SOURCE: Bernstein Liebhard LLP
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