Judge Refuses to Toss Shareholder Suit Against Clover Health
-
Mar 25, 2022
Roughly a year after a highly critical report from an activist short seller cast a pall over Clover Health Investments Corp.’s debut as a publicly traded company, a federal judge has denied a motion to dismiss a key shareholder lawsuit that accuses the Medicare Advantage startup of hiding critical information from investors.
While the Feb. 28 ruling does not make any judgment about the merits of the allegations brought by shareholders Timothy Bond and Jean-Nicolas Tremblay, it is still noteworthy, one legal expert tells AIS Health, a division of MMIT.
“Often these cases are filed but then they’re disposed of early on,” says David Kaufman, an attorney with Laurus Law Group LLC. “This case was not disposed of, so getting beyond the motion to dismiss is pretty significant, and it’s going to require substantial litigation from this point forward before it reaches any kind of decision.”
Read more
© 2024 MMIT
The Latest
Meet Our Reporters
Meet Our Reporters
GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND
Sign up for publications to get unmatched business intelligence delivered to your inbox.