MA Startup Hits Back at Damning Report as SEC Investigates

The tech-focused Medicare Advantage startup Clover Health — which should be riding high after its recent stock market debut — is instead being probed by the Securities and Exchange Commission and is facing a shareholder lawsuit amid allegations it misled investors by failing to publicly disclose that it was being investigated by the Dept. of Justice.

While the company has denied the allegations via a lengthy, public rebuttal, securities law experts tell AIS Health that Clover could face liability if it did actually conceal material information from investors — a fact that hasn’t yet been determined.

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Leslie Small

Leslie Small

Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.

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