Datapoint: Clover Health Cleared in SEC Probe
The U.S. Securities and Exchange Commission (SEC) does not intend to recommend an enforcement action related to its multiyear investigation of Clover Health Investments Corp. The SEC launched its probe shortly after a 2021 report from the activist short-seller Hindenburg Research criticized multiple Clover business practices and accused its leaders of failing to disclose when the firm went public that it was under investigation by the Dept. of Justice. The Medicare Advantage-focused startup earlier this year settled a series of shareholder-led class action lawsuits that related to the DOJ probe. According to Sept. 30 SEC filing by the company, the agency on Sept. 26 informed Clover that it had concluded its investigation and, “based on the information that the SEC had as of the date of the notice,” it would not seek an enforcement penalty. Clover Health currently serves 79,660 MA members.
Source: AIS’s Directory of Health Plans
