February 24, 2021 - An investor in shares of MultiPlan Corporation (NYSE: MPLN) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by MultiPlan Corporation in connection with certain allegedly false and misleading statements made between July 12, 2020 and November 10, 2020.
New York based MultiPlan Corporation provides data analytics and technology-enabled cost management solutions to the U.S. healthcare industry. In July 2020, Churchill III announced that it had entered into a preliminary agreement, subject to shareholder approval, to merge with MultiPlan Corporation. On November 11, 2020, a report was published entitled “MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab[.]” The report described a series of issues involving MultiPlan Corporation including that “MPLN is in the process of losing its largest client, UnitedHealthcare (‘UHC’). UHC has formed a competitor to MPLN that offers significantly lower prices and fewer conflicts of interest.” Shares of MultiPlan Corporation (NYSE: MPLN) declined from $9.14 per share on November 6, 2020 to as low as $6.12 per share on November 12, 2020, nearly 40% below the price at which shareholders could have redeemed their shares at the time of the shareholder vote on the Merger. According to the complaint the plaintiff alleges on behalf of purchasers of MultiPlan Corporation (NYSE: MPLN) common shares between July 12, 2020 and November 10, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 12, 2020 and November 10, 2020, the defendants made materially false and misleading statements in connection with the Merger and between July 12, 2020 and November 10, 2020 regarding the business, operation, and prospects of MultiPlan.