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MoKa Files Derivative Suit Against Clover Health Over SPAC Omissions

Morris Kandinov LLP has filed a derivative complaint on behalf of a shareholder of Clover Health Investments, Corp. (CLOV) alleging, among other things, that the company concealed from investors, before going public through a SPAC, that the U.S. Department of Justice was actively investigating at least a dozen different matters relating to its business, which jeopardized the company’s ability to earn revenue through participation in the Medicare Advantage program. After the company went public, the investigation was revealed, causing the company’s stock price to fall by half. It now trades at less than a third of the offering price.

By MoKa
12/14/21

For additional information about the case, contact Leo Kandinov at leo@moka.law.