HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages MultiPlan (MPLN) Investors with Losses to Contact Its Attorneys, Firm Investigating Possible Securities Fraud

12/2/2020, 9:49 PM (Source: GlobeNewswire)

SAN FRANCISCO, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges MultiPlan Corporation (NYSE: MPLN) investors with significant losses to submit your losses now. The firm is investigating possible securities fraud and certain investors may have valuable claims.

Relevant Holding Period: Before Nov. 11, 2020
Visit: www.hbsslaw.com/investor-fraud/MPLN
Contact An Attorney Now: MPLN@hbsslaw.com

MultiPlan Corporation (MPLN) Investigation:

The investigation centers on MultiPlan’s financial disclosures leading up to- and through- its merger and going public transaction with special purpose acquisition (“SPAC”) company Churchill Capital Corp. III.

More specifically, Hagens Berman is investigating the company’s and its sponsor’s statements about MultiPlan’s client base and revenues.

On Nov. 11, 2020, Muddy Waters Capital published a scathing report, “MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab,” based in part on its interviews of former MultiPlan executives.

Among other things, Muddy Waters observes: (1) the company and its sponsors concealed the impending loss of MultiPlan’s largest client (“UnitedHealthcare”, or “UHC”) due to UHC’s formation of a competitor (“Naviguard”) that offers significantly lower prices and fewer conflicts of interest; (2) MultiPlan’s financials “have been financially engineered to obscure the decay in its business;” and, (3) “[w]e understand that in 2018, MPLN released revenue reserves, dropping them from approximately 30% to 10% of revenue, which we believe enabled MPLN to show 2018 EBITDA growth amid shrinking sales.”

Concluding, Muddy Waters states “MPLN paints a rosy picture of its prospects, but these are inconsistent with the facts: its revenue peaked in 2017, and Naviguard is never once mentioned by management as a threat” and “we are concerned that management’s strategy carries the potential to bankrupt MPLN.”

“We’re focused on investors’ losses and whether MultiPlan misrepresented its client base and revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you are a MultiPlan investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding MultiPlan should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MPLN@hbsslaw.com.

About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation.   More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Reed Kathrein, 844-916-0895

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