Clover Health Investments, Corp. (CLOV) Securities Class Action:
The Complaint alleges that, throughout the Class Period, Defendants misrepresented and concealed that: (1) Clover's Clover Assistant platform was under investigation by the Department of Justice for at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals; (2) the DOJ's investigation presented an existential risk to Clover because it derives most of its revenues from Medicare; and (3) Clover's sales were driven by a major undisclosed related party deal and misleading marketing targeting the elderly, not its purported "best-in-class" technology.
Investors allegedly began to learn the truth on Feb. 4, 2021 when Hindenburg Research released a scathing report about the company, alleging Clover's sales are the product of misleading marketing activities targeting the elderly and a major undisclosed related party deal.