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Case Status:    SETTLED
On or around 10/03/2023 (Date of order of final judgment)

Filing Date: February 05, 2021

According to the Complaint, Clover Health Investments, Corp. purports to be a Medicare Advantage insurer that uses its software platform, the Clover Assistant, to provide America’s seniors with PPO and HMO insurance plans. On January 7, 2021, Clover merged with SPAC Social Capital Hedosophia Holdings Corp. III and began to trade under the symbol CLOV on NASDAQ. On February 4, 2021, Hindenburg Research issued a report stating that prior to the merger, Clover has been under active investigation by the U.S. Department of Justice for issues ranging from kickbacks to marketing practices to undisclosed third-party deals.

The Complaint alleges that during the Class Period, Defendants misled investors by misrepresenting and/or failing to disclose 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.

On April 23, 2021, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 21-CV-00096.

Lead Plaintiff filed an amended Complaint on June 28, 2021. Defendants filed a Motion to Dismiss the amended Complaint on August 27. On February 28, 2022, the Court issued an Order denying Defendants' Motion to Dismiss.

Lead Plaintiff filed a Motion for Class Certification on July 1, 2022. On February 14, 2023, the Court issued an Order granting Plaintiffs' Motion for Class Certification.

The parties entered into a Stipulation and Agreement of Settlement on May 19, 2023. The Court granted preliminary approval of the Settlement on May 26. On October 3, 2023, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

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