NEW YORK, Feb. 5, 2021 – Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of Clover Health Investments, Corp. (NASDAQ: CLOV).
On April 21, 2020, a blank check/special purpose acquisition vehicle called Social Capital Hedosophia Holdings Corp. III (“SCH”) had its IPO. SCH’s securities were listed and traded under the symbols IPOC, IPOC.WS, and IPOC.U. On October 6, 2020, SCH announced it was going to merge with Clover Health Investments Corp. in a deal that valued Clover at a $3.7B enterprise value. The deal closed on January 7, 2021 and the company changed its name to Clover Health Investments, Corp. and its stock symbol to “CLOV”.
On February 4, 2021, Hindenburg Research issued a report alleging that Clover was “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, according to a Civil Investigative Demand (similar to a subpoena) [Hindenburg] obtained.”
On this news, Clover’s stock price fell over 12% and closed at $12.23 per share on February 4, 2021.
On February 5, 2021, Clover announced that it had “received a letter from the [SEC] indicating that it is conducting an investigation and requesting document and data preservation for the period from January 1, 2020, to the present, relating to certain matters that are referenced in the [Hindenburg] article.
Wolf Popper LLP has successfully recovered billions of dollars for defrauded investors. Wolf Popper’s reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation.
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