Hagens Berman urges Clover Health Investments, Corp. investors to submit their losses now. The firm is investigating possible securities fraud and certain investors may have valuable claims.
Contact An Attorney Now: CLOV@hbsslaw.com
Clover Health Investments, Corp. (CLOV) Investigation:
The investigation concerns whether Clover engaged in illegal sales and marketing activities to induce sales growth and share gains.
Prior to and since going public through a “blank check company,” Clover has promoted its Medicare insurance sales growth and client acquisition rates, touting its “best-in-class” software platform Clover Assistant as the driver.
But on Feb. 4, 2021, Hindenburg Research released a scathing report about the company, alleging Clover’s sales are instead the product of misleading marketing activities targeting the elderly and a major undisclosed related party deal.
Specifically, Hindenburg claims that Clover Health has concealed that the Department of Justice is actively investigating the company for activities ranging from illegal kickbacks to deceptive marketing practices. Among other things, Hindenburg alleges that the company uses a subsidiary, Seek Insurance Services, to misleadingly steer seniors toward acquiring Clover Health plans.
In addition, citing accounts from former employees, Hindenburg states “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, the price of Clover shares fell sharply lower on Feb. 4, 2021.
“We’re focused on investor losses and whether Clover may have misled investors about the legality of its business practices and related financial reporting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Clover should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:CLOV@hbsslaw.com.
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Reed Kathrein, 844-916-0895