The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired MultiPlan Corporation (“MultiPlan” or the “Company”) f/k/a Churchill Capital Corp. III (“Churchill III”) (NYSE: MPLN) securities from July 12, 2020 through November 10, 2020, inclusive (the “Class Period”). Investors have until April 26, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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. MultiPlan is a New York-based data analytics end-to-end cost management solutions provider to the U.S. healthcare industry. The MultiPlan class action lawsuit 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.
If you purchased or otherwise acquired Multiplan securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.