The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Clover Health Investments, Corp. (NASDAQ: CLOV) who purchased shares between October 6, 2020 and February 3, 2021. The action, which was filed in the United States District Court for the Middle District of Tennessee, alleges that the Company violated federal securities laws.
In particular, the Clover lawsuit alleges 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.
Shareholders have until April 6, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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