According to the Complaint, defendant MSP Recovery commonly does business under the name “LifeWallet” and describes itself as a leading data analytics company specializing in healthcare Claims recovery.

The Complaint alleges defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, that: (1) MSP Recovery did not disclose that it was under active investigation by the SEC and federal prosecutors; (2) certain financial information given to investors by MSP Recovery was materially false and misleading; (3) MSP Recovery did not fully disclose the extent of its issues when it admitted that its financial results would need to be restated; (4) MSP Recovery was unable to afford the assigned claims on which it depends, and defrauded a major healthcare provider that sold or assigned it its claims; (5) The Registration Statement contained various false or misleading statements and was negligently prepared; (6) The Proxy contained false or misleading statements; and (7) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times and/or were negligently prepared.

On August 24, 2023, the Court issued an Order on the Court's own motion dismissing the case without prejudice, ruling that the Complaint is an impermissible shotgun pleading. Plaintiff was given leave to amend the Complaint. On August 28, Plaintiff gave notice that he did not intend to file an amended Complaint and voluntarily dismissed the case.