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

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Hagens Berman Sobol Shapiro LLP
·4 min read
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SAN FRANCISCO, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the investigations can be found at the links provided.

MLPN Investors Click Here.
ZI Investors Click Here.

MultiPlan Corporation (MPLN) Investigation:

Relevant Holding Period: Before Nov. 11, 2020
Visit: www.hbsslaw.com/investor-fraud/MPLN
Contact An Attorney Now: MPLN@hbsslaw.com
844-916-0895

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.

ZoomInfo Technologies (ZI) Investigation:

Relevant Holding Period: Before Nov. 10, 2020
Visit: www.hbsslaw.com/investor-fraud/ZI
Contact An Attorney Now: ZI@hbsslaw.com
844-916-0895

Hagens Berman is investigating ZoomInfo’s compliance with accounting rules (“GAAP”) governing the reporting of certain tax benefits.

More specifically, on Nov. 9, 2020, ZoomInfo announced that on Nov. 5, 2020 its audit committee of the board of directors concluded the company’s Q2 2020 financial statements filed with the SEC should not be relied on.

ZoomInfo further revealed it would restate those results because it improperly recorded a $21.6 million tax benefit related to the GAAP basis and tax basis of partnerships owned by corporations within ZoomInfo’s corporate structure. As a result of this improper accounting, ZoomInfo understated its Q2 2020 net loss by over 38%.

“We’re focused on investors’ losses and whether ZoomInfo intentionally manipulated the GAAP/tax basis differential of certain assets to present a misleading picture of the company’s true financial results,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you are a ZoomInfo 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 and/or ZoomInfo 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 and/or ZI@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.

Contact:
Reed Kathrein, 844-916-0895