Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Clover Health Investments, Corp. (CLOV)

NEW YORK, Feb. 08, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Clover Health Investments, Corp. (“Clover” or the “Company”) (NASDAQ: CLOV) in the United States District Court for the Middle District of Tennessee on behalf of those who purchased or acquired the securities of Clover between October 6, 2020 and February 4, 2021, inclusive (the “Class Period”) and/or purchased or otherwise acquired Clover securities pursuant or traceable to the registration statement and prospectus issued in connection with the December 2020 Merger of Clover and Social Capital III. The lawsuit seeks to recover damages for Clover investors under the federal securities laws.

The Complaint alleges that the Company made false and misleading statements to the market. Clover was the subject of an active DOJ investigation of at least 12 issues including kickbacks and deceptive marketing. The investigation represented a major threat to the Company’s future due to its dependence on Medicare for revenue. The Company’s sales were not driven by its “best-in-class” technology as it touted, but rather by misleading marketing practices aimed at senior citizens. A considerable portion of the Company’s sales were derived from an undisclosed relationship with a brokerage firm controlled by the Clover’s head of sales. Based on these facts, the Company’s public statements were false and materially misleading throughout the Class Period. When the market learned the truth about Clover, investors suffered damages.

Investors who purchased or otherwise acquired shares of Clover during the Class Period should contact the Firm prior to the April 6, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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