Clover Health Investments Inc. (NASDAQ: CLOV) stock surged by 20.41% at the last trading close while the CLOV stock continued to rise by 0.9% in the pre-market trading. Clover Health is a medical technology firm. It collects, structures, and analyzes clinical and behavioral data using its patented technology platform in order to enhance medical outcomes and reduce costs for patients.
What is happening?
Mentioned in a reportpublished on April 8, CLOV stock was up more than 14% in the afternoon, according to news that CLOV has been listed and approved in ten states to participate in the global and competent direct contracting model.
On April 6 Kaskela Law LLC reports the filing of a shareholder class action lawsuit on behalf of the investors who purchased shares of Clover Health Investments Corp. securities between October 6, 2020 and February 4, 2021, inclusive (the “Class Period”).
According to the lawsuit, Hindenburg Research released a research study on February 4, 2021, revealing that Clover’s flagship platform, Clover Assistant, was under investigation by the US Department of Justice for a number of problems, including illegal kickbacks, marketing activities, and unspecified related-party transactions. Hindenburg discovered that Clover’s revenue growth was fueled by misleading sales tactics rather than technology.
CLOV filed a Form 8-K the next day, revealing that the Securities and Exchange Commission was undertaking an “investigation and demanding record and data preservation for the period from January 1, 2020, to the present, relating to certain matters that are cited in the Hindenburg Research report.
For more detail about this action, Clover stockholders may contact Kaskela Law LLC. Kaskela Law LLC is a securities fraud, corporate governance, and merger and acquisition arbitration firm that primarily serves investors.