MultiPlan Stock: Berger Montague Investigates Alleged Securities Fraud Claims Against MultiPlan Corp. (f/k/a Churchill Capital Corp. III) (MPLN, CCXX) Lead Plaintiff Deadline is April 26, 2021

April 07, 2021 2:11 PM EDT | Source: Berger Montague

Philadelphia, Pennsylvania--(Newsfile Corp. - April 7, 2021) - Berger Montague is investigating potential securities fraud claims against MultiPlan Corp. ("MultiPlan" or the "Company"), f/k/a Churchill Capital Corp. III ("Churchill III") (NYSE: MPLN) (NYSE: MPLN.WS) (NYSE: CCXX) (NYSE: CCXX.WS) (NYSE: CCXX.U), on behalf of: (1) purchasers of MultiPlan securities between July 12, 2020 and November 10, 2020, inclusive (the "Class Period"); and (2) 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 consummated in October 2020 (the "Merger").

If you purchased MultiPlan securities during the Class Period or held Churchill III Class A shares entitled to vote on the Merger, have questions concerning your rights or interests, or would like to discuss Berger Montague's investigation, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Donnell Much at dmuch@bm.net or (215) 875-4667, or contact us at www.bergermontague.com/multiplan.

Churchill III was formed in October 2019 as a special purpose acquisition vehicle. On February 14, 2020, Churchill III completed its initial public offering, selling 110 million ownership units to investors for gross proceeds of $1.1 billion (the "IPO"). The complaint alleges that, throughout the Class Period, defendants failed to disclose that: (a) MultiPlan was losing tens of millions of dollars in sales and revenue to Naviguard, a competitor created by one of MultiPlan's largest customers, UnitedHealthcare, which threatened up to 35% of the Company's sales and 80% of its levered cash flows by 2022; (b) sales and revenue declines in the quarters leading up to the Merger were due to a fundamental deterioration in demand for MultiPlan's services and increased competition; (c) MultiPlan was facing significant pricing pressures; and (d) as a result, Churchill III investors had grossly overpaid for the acquisition of MultiPlan in the Merger.

On November 11, 2020, one month after the close of the Merger, Muddy Waters published a report stating that, among many other things, MultiPlan was in significant financial decline because of a fundamentally flawed business model that profited from excessively high healthcare costs. On 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.

If you purchased MultiPlan securities during the Class Period or held Churchill III Class A shares entitled to vote in the Merger, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is April 26, 2021. You do not need to be a lead plaintiff to share in any potential Class recovery.

Whistleblowers: Persons with non-public information regarding MultiPlan are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.

Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.

Contacts

Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net

Donnell Much, Associate
Berger Montague
(215) 875-4667
dmuch@bm.net

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/79706

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