Initial Lawsuit
Plaintiff brings this securities class action on behalf of all investors who purchased or otherwise acquired Clover Health Investments, Corp. (formerly known as Social Capital Hedosophia Holdings Corp. III) common stock between October 6, 2020 and February 3, 2021, inclusive.
- Filing Date
02/05/2021 - Class Period
10/06/2020 to 02/03/2021 - Transgression
Securities Violation - Filing Firms
Block & Leviton, LLP
Branstetter, Stranch & Jennings, PLLC - Case Title
Bond v. Clover Health Investments, Corp. - Docket Number
3:21-cv-00096 - Court
Tennessee Middle District Court - Free File
Complaint
Allegations
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(i) Clover was the recipient of a Civil Investigative Demand from the DOJ;
(ii) much of Clover’s sales are driven by a major related party deal that Clover not only failed to disclose but took active steps to conceal;
(iii) Clover’s subsidiary Seek Insurance failed to disclose its relationship with Clover and misled consumers as to its purported independence;
(iv) Clover’s software was in fact rudimentary; and
(v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Defendants
- Company
Clover Health Investments, Corp. - Chief Executive Officer
Chamath Palihapitiya - Chief Executive Officer
Vivek Garipalli - Chief Technology Officer
Andrew Toy
