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Multiplan Corporation

Securities Class Action

  • Date:
  • 6/7/2021
  • Company Name:
  • Multiplan Corporation
  • Stock Symbol:
  • MPLN
  • Class Period:
  • FROM 7/12/2020 TO 11/10/2020
  • Status:
  • Filed
  • Filing Date:
  • 4/8/2021
  • Court:
  • U.S. District Court: Eastern District of New York

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Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors that purchased MultiPlan Corporation (NYSE: MPLN) securities between July 12, 2020 and November 10, 2020, inclusive (the “Class Period”) and 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 (collectively, “MultiPlan”), which was consummated in October 2020 (the “Merger”). Investors have until June 7, 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 MultiPlan securities during the Class Period or were a Churchill III Class A common stock holder entitled to a vote on the merger and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out the form below. There is no cost or obligation to you.
 

The individual or institution below (“Plaintiff”) has reviewed and agrees to the Bragar Eagel & Squire, P.C. (“BESPC”) retainer agreement and authorizes BESPC to prosecute an action on Plaintiff’s behalf under the federal securities laws or applicable state laws to recover damages on behalf of investors in Multiplan Corporation. BESPC will prosecute the action on a full contingency basis and will forward all costs and expenses.
 

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