Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for global professionals · Friday, March 29, 2024 · 699,671,454 Articles · 3+ Million Readers

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against MultiPlan Corporation (MPLN)

/EIN News/ -- NEW YORK, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against MultiPlan Corporation (f/k/a Churchill Capital Corp. III) (“Churchill III”) (“MultiPlan” or the “Company”) (NYSE: MPLN) in the United States District Court for the Southern District of New York on behalf of those who purchased or acquired the securities of MultiPlan between July 12, 2020 and November 10, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for investors under the federal securities laws.

The Complaint alleges that 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. The Complaint 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

Investors who purchased or otherwise acquired shares of MultiPlan during the Class Period should contact the Firm prior to the April 25, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.


Powered by EIN News
Distribution channels: Consumer Goods, Law


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release