Glancy Prongay & Murray LLP, A Leading Securities Fraud Law Firm, Announces The Filing Of A Securities Class Action On Behalf Of MultiPlan Corporation (MPLN) Investors

Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors: (a) who purchased MultiPlan Corporation f/k/a Churchill Capital Corp.
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Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors: (a) who purchased MultiPlan Corporation f/k/a Churchill Capital Corp. III ("Churchill III" or the "Company") (MPLN) securities between July 12, 2020 and November 10, 2020, inclusive (the "Class Period"); and (b) all holders of Churchill III Class A common stock entitled to vote on Churchill III's merger with and acquisition of Polaris Parent Corp. and its consolidated subsidiaries (collectively, "MultiPlan") consummated in October 2020 (the "Merger"). MultiPlan investors have until April 26, 2021 to file a lead plaintiff motion.

If you suffered a loss on your MultiPlan investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/multiplan-corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On November 11, 2020, Muddy Waters Research issued a report titled "MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab," alleging, among other things that MultiPlan is "in financial decline, and its financial statements were engineered to obscure this existing deterioration." It further stated that the Company "is in the process of losing its largest client, UnitedHealthcare," which "has formed a competitor to MultiPlan that offers significantly lower prices and fewer conflicts of interest."

On this news, the Company's stock price fell $1.72 per share, or approximately 20%, to close at $7.01 per share on November 11, 2020.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that MultiPlan was losing tens of millions of dollars in sales and revenues to Naviguard, a competitor created by one of MultiPlan's largest customers, UnitedHealthcare, which threatened up to 35% of MultiPlan's sales and 80% of its levered cash flows by 2022; (2) that sales and revenue declines in the quarters leading up to the Merger were not due to "idiosyncratic" customer behaviors as represented, but rather due to a fundamental deterioration in demand for MultiPlan's services and increased competition, as payors developed competing services and sought alternatives to eliminating excessive healthcare costs; (3) that MultiPlan was facing significant pricing pressures for its services and had been forced to materially reduce its take rate in the lead up to the Merger by insurers, who had expressed dissatisfaction with the price and quality of MultiPlan's services and balanced billing practices, causing MultiPlan to cut its take rate by up to half in some cases; (4) that, as a result of the foregoing, MultiPlan was set to continue to suffer from revenues and earnings declines, increased competition and deteriorating pricing dynamics following the Merger; (5) that, as a result of the foregoing, MultiPlan was forced to seek continued revenue growth and to improve its competitive positioning through pricey acquisitions, including through the purchase of the healthcare technology company HST for $140 million at a premium price from a former MultiPlan executive only one month after the Merger; and (6) that, as a result of the foregoing, Churchill III investors had grossly overpaid for the acquisition of MultiPlan in the Merger, and MultiPlan's business was worth far less than represented to investors.

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If you purchased or otherwise acquired MultiPlan securities during the Class Period, you may move the Court no later than April 26, 2021to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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