CLOVER HEALTH INVESTMENTS CORP. INVESTIGATION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP is investigating potential securities fraud claims on behalf of the shareholders of Clover Health Investments Corp.
Wolf Haldenstein Adler Freeman & Herz LLP is investigating potential securities fraud claims on behalf of shareholders of Clover Health Investments Corp. (“Clover” or the “Company”) (NASDAQ: CLOV) resulting from allegations that Clover might have issued misleading information to the investing public.
The report alleged that “has not disclosed that its business model and its software offering, called 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 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 shares stock fell $1.72 per share to close at $12.23 per share on February 4, 2021, and continued its decline on the subsequent trading day.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
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