Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-multiplan-corp-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of MultiPlan Corporation f/k/a Churchill Capital Corp. III (“Churchill III”) (NYSE: MPLN) securities during the period between July 12, 2020 and November 10, 2020, inclusive (the “Class Period”) and 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”), which merger was consummated in October 2020 (the “Merger”). This action was filed in the Southern District of New York and is captioned Srock v. MultiPlan Corporation, No. 21-cv-01640.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Churchill IIII securities during the Class Period or that was entitled to vote on the Merger to seek appointment as lead plaintiff in the MultiPlan class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the MultiPlan class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the MultiPlan class action lawsuit. An investor’s ability to share in any potential future recovery of the MultiPlan class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the MultiPlan class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the MultiPlan class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at bcochran@rgrdlaw.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-multiplan-corp-class-action-lawsuit.html.
The MultiPlan class action lawsuit charges Churchill III and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Churchill III is a blank check company that merged with MultiPlan, a healthcare cost specialist.
In July 2020, Churchill III announced that it had entered into a preliminary agreement, subject to shareholder approval, to merge with MultiPlan. MultiPlan is a New York-based data analytics end-to-end cost management solutions provider to the U.S. healthcare industry. The MultiPlan class action lawsuit alleges that defendants made materially false and misleading statements in connection with the Merger and during the Class Period regarding the business, operation, and prospects of MultiPlan.
On November 11, 2020 – only one month after the close of the Merger – Muddy Waters published a report on Churchill III titled “MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab” (the “Muddy Waters Report”). Among other revelations, the Muddy Waters Report revealed that MultiPlan was in the process of losing its largest client, UnitedHealthcare, which was estimated to cost the Company up to 35% of its revenues and 80% of its levered free cash flow within two years.
As a result of this news, the price of Churchill III securities plummeted. By November 12, 2020, the price of Churchill III Class A common stock fell to a low of just $6.12 per share, nearly 40% below the price at which shareholders could have redeemed their shares at the time of the shareholder vote on the Merger.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210224006185/en/
Contacts:
Brian E. Cochran, 800-449-4900
bcochran@rgrdlaw.com
