Shares of Clover Health (NASDAQ:CLOV) stock are hurting on Thursday morning after a new short-selling report from Hindenburg Research.
In the document, Hindenburg said that after its recent special purpose acquisitions (SPAC) merger from investor Chamath Palihapitiya. Palihapitiya,
, is the founder and CEO of California-based Social Capital.
The report claims that during the SPAC merger last month, the duo “ in the run-up to the [merger].” Additionally, the DOJ is investigating “at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals, according to a Civil Investigative Demand” that Hidenburg obtained. In fact, one example was that Clover had misleading marketing that specifically targeted the elderly.
Moreover, that Clover Health will be issuing a statement regarding the report in the next few hours. That will be included here when it becomes available.
CLOV stock was down 10% as of Thursday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.
