SAN FRANCISCO, Feb. 23, 2021 (GLOBE NEWSWIRE) — Hagens Berman encourages Clover Well being Investments, Corp. (NASDAQ: CLOV) buyers to submit their losses now. A securities fraud class motion has been filed and sure buyers could have worthwhile claims.
Clover Well being Investments, Corp. (CLOV) Securities Class Motion:
The Grievance alleges that, all through the Class Interval, Defendants misrepresented and hid that: (1) Clover’s Clover Assistant platform was beneath investigation by the Division of Justice for at the least 12 points starting from kickbacks to advertising practices to undisclosed third-party offers; (2) the DOJ’s investigation offered an existential danger to Clover as a result of it derives most of its revenues from Medicare; and (3) Clover’s gross sales have been pushed by a significant undisclosed associated occasion deal and deceptive advertising focusing on the aged, not its purported “best-in-class” know-how.
Traders allegedly started to study the reality on Feb. 4, 2021 when Hindenburg Analysis launched a scathing report concerning the firm, alleging Clover’s gross sales are the product of deceptive advertising actions focusing on the aged and a significant undisclosed associated occasion deal.
Hindenburg claimed that Clover hid that the DOJ is actively investigating the corporate for unlawful kickbacks and misleading advertising practices. Hindenburg alleged that the corporate makes use of a subsidiary, Search Insurance coverage Providers, to misleadingly steer seniors towards buying Clover plans. Citing accounts from former staff, Hindenburg additional acknowledged “that a lot of Clover’s gross sales are fueled by a significant undisclosed relationship between Clover and [B&H Assurance,] an out of doors brokerage agency managed by Clover’s Head of Gross sales (Hiram Bermudez).”
The following day, Clover admitted it was totally conscious of the DOJ inquiry and Bermudez’s possession in B&H Assurance. The corporate additionally revealed that it acquired a letter from the SEC following Hindenburg’s report.
On this information, the value of Clover shares sharply declined.
“We’re centered on investor losses and whether or not Clover could have misled buyers concerning the legality of its enterprise practices and associated monetary reporting,” mentioned Reed Kathrein, the Hagens Berman companion main the investigation.
When you invested in Clover shares, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with personal info relating to Clover ought to think about their choices to assist in the investigation or benefit from the SEC Whistleblower program. Beneath the brand new program, whistleblowers who present unique info could obtain rewards totaling as much as 30% of any profitable restoration made by the SEC. For extra info, name Reed Kathrein at 844-916-0895 or e-mail [email protected].
About Hagens Berman
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Reed Kathrein, 844-916-0895