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Kessler Topaz Meltzer & Check, LLP Reminds Investors of Class Action Lawsuit Against Clover Health Investments, Corp. (CLOV)

The law firm of Kessler Topaz Meltzer & Check, LLP reminds Clover Health Investments, Corp. (NASDAQ: CLOV) (“Clover”) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired Clover publicly traded securities between October 6, 2020 and February 4, 2021, inclusive (the “Class Period”), and/or purchased or acquired Clover securities pursuant or traceable to Clover’s registration statement and prospectus issued in connection with the December 2020 Merger.

Deadline Reminder: Investors who purchased or acquired Clover publicly traded securities during the Class Period may, no later than April 6, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. [phone] or Adrienne Bell, Esq. [phone]; toll free at [phone]; via e-mail at [e-mail]; or click https://www.ktmc.com/clover-health-investments-corp-securities-class-a ....

According to the complaint, Clover provides health insurance services. Clover was taken public through a reverse merger with IPOC, a Special Purpose Acquisition Company (the “Business Combination”). Prior to the Business Combination, IPOC traded on the New York Stock Exchange. The Class Period commences on October 6, 2020, when Clover issued a press release announcing its intention to become a public company through a merger with IPOC. On October 20, 2020, Clover filed its registration statement and preliminary proxy statement/prospectus on a Form S-4 with the SEC (the “Registration Statement”). The Registration Statement was amended on December 9, 2020 and December 10, 2020, and was declared effective on December 11, 2020. The Registration Statement touted Clover’s growth as strong and organic.

On February 4, 2021, before market hours, Hindenburg Research published a research report that revealed that Clover’s flagship platform, Clover Assistant, was the subject of a U.S. Department of Justice (“DOJ”) investigation for a variety of issues, including illegal kickbacks, marketing practices, and undisclosed related-party transactions. Hindenburg discovered that Clover’s sales growth was not driven by technology, but by deceptive sales practices. Following this news, Clover common stock (CLOV) fell $1.72 per share, or 12.3%, to close at $12.23 per share on February 4, 2021, and Clover warrants (CLOVW) fell $0.18 per warrant, or 5%, to close at $3.39 per warrant on February 4, 2021.