Clover Health Investments, Corp.

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.