Law Offices of Howard G. Smith continues its investigation on behalf of Clover Health Investments, Corp. f/k/a Social Capital Hedosophia Holdings Corp. III (“Clover Health” or the “Company”) (NASDAQ: CLOV, CLOVW) investors concerning the Company’s possible violations of federal securities laws.
On February 4, 2021, Hindenburg Research released a report entitled “Clover Health: How the ‘King of SPACs’ Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation[.]” The report alleged, among other things, that “Clover has not disclosed that its business model and its software offering, called the Clover Assistant, are under active investigation by the Department of Justice (DOJ), which is investigating at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals.”
On this news, the Company’s share price fell $1.72, or 12%, to close at $12.23 per share on February 4, 2021, on unusually heavy trading volume.
On February 5, 2021, the Company received a letter from the U.S. Securities and Exchange Commission (“SEC”), indicating that it is conducting an investigation and requesting document and data preservation from January 1, 2020 to the present.
On this news, the Company’s share price fell sharply during intraday trading on February 5, 2021.
If you purchased Clover Health securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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