Newsfile
Corp. February 7, 2021
San Francisco,
California--(Newsfile Corp. - February 7, 2021) - Hagens Berman encourages
Clover Health Investments, Corp. (NASDAQ: CLOV) investors
to submit their losses now. The
firm is investigating possible securities fraud and certain investors may have
valuable claims.
Visit: www.hbsslaw.com/investor-fraud/CLOV
Contact An Attorney Now: CLOV@hbsslaw.com
844-916-0895
Clover Health
Investments, Corp. (CLOV) Investigation:
The investigation
concerns whether Clover engaged in illegal sales and marketing activities.
Prior to and since going
public through a "blank check company," Clover has promoted its
Medicare insurance sales growth, touting its "best-in-class" software
platform Clover Assistant as the driver.
But on Feb. 4,
2021, Hindenburg Research released a scathing report about the
company, alleging Clover's sales are instead the product of misleading
marketing activities targeting the elderly and a major undisclosed related
party deal.
Specifically, Hindenburg claims
that Clover has concealed that the DOJ is actively investigating the company
for illegal kickbacks and deceptive marketing practices. Hindenburg also
alleges that the company uses a subsidiary, Seek Insurance Services, to
misleadingly steer seniors toward acquiring Clover Health plans. Citing
accounts from former employees, Hindenburg further states
"that much of Clover's sales are fueled by a major undisclosed
relationship between Clover and [B&H Assurance,] an outside brokerage firm
controlled by Clover's Head of Sales (Hiram Bermudez)."
Then, on Feb. 5, 2021,
Clover published a response. Although calling many of Hindenburg's claims
"completely untrue," Clover admitted (1) it "was fully aware of
the DOJ inquiry" (2) Bermudez's ownership in B&H Assurance, and (3) it
received a letter from the SEC following Hindenburg's report.
On this news, Clover's
shares have declined sharply.
"We're focused on
investor losses and whether Clover may have misled investors the legality of
its business practices and related financial reporting," said Reed
Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Clover
shares, click here to discuss your legal
rights with Hagens Berman.
Whistleblowers: Persons
with non-public information regarding Clover should consider their options to
help in the investigation or take advantage of the SEC Whistleblower program.
Under the new program, whistleblowers who provide original information may
receive rewards totaling up to 30 percent of any successful recovery made by
the SEC. For more information, call Reed Kathrein at 844-916-0895 or
email CLOV@hbsslaw.com.
# # #
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around
the country and eighty attorneys. The firm represents investors,
whistleblowers, workers and consumers in complex litigation. More about the
firm and its successes is located at hbsslaw.com. For the latest news visit
our newsroom or follow
us on Twitter at @classactionlaw.
To view the source
version of this press release, please visit https://www.newsfilecorp.com/release/73873
https://news.yahoo.com/clov-fraud-investigation-hagens-berman-174100553.html
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