Porch Group Inc. Investigation
The law firm of Kirby McInerney LLP is investigating potential claims against Porch Group Inc. (“Porch” or the “Company”) (NASDAQ: PRCH). The investigation concerns whether Porch and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On April 8, 2021, Spruce Point Capital Management (“Spruce Point”) published a report entitled “A Porch On A Flimsy Foundation.” The Spruce Point report characterized Porch as “a classic example of a Company that has never found a business model that makes sense and was in technical default with a going concern warning before using the frothy SPAC market as an opportunity to allow insiders to dump shares.” Spruce Point further accused the Company of concealing or obscuring numerous business activities between 2017 and 2021 and faking a non-existent partnership service. Spruce Point estimated that Porch understates its true leverage by keeping up to $1.1 billion potential exposure to financial guarantees off its books and artificially inflates its gross margins by engaging in barter transactions.
On this news, Porch’s stock price fell $0.50 per share, or 2.89%, to close at $16.80 per share on April 9, 2021.
If you purchased or otherwise acquired Porch 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 firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.