Hindenburg Research has accused one of the backers of Clover Health Institute--Chamath Palihapitiya--of misleading investors when the company prepared to go public via SPAC last month.
TheStreet's Martin Baccardax wrote, "Hindenburg, which insisted it had no position in Clover Health, said the group is under 'active investigation' by the U.S. Department of Justice linked to "at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals" based on a civil investigative demand it claims to have seen."
"Clover Health listed on the Nasdaq earlier this year following a $3.7 billion merger with Palihapitiya's Social Capital Hedosophia Holdings Corp. III, a so-called special purpose acquisition company, that left Palihapitiya with a 27% stake. The group sells Medicare Advantage plans to its 57,000 members," Baccardax continued.
Editors Note: Following last week's report from Hindenburg, Clover addressed the concerns in the report in a post.