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Kaskela Law LLC Announces the Filing of a Shareholder Class Action Lawsuit Against MultiPlan Corp. and Encourages Investors to Contact the Firm (MPLN, CCXX)

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Kaskela Law
·2 min read
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PHILADELPHIA, March 02, 2021 (GLOBE NEWSWIRE) --

Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against MultiPlan Corporation (“MultiPlan” or the “Company”) (NYSE: MPLN), formerly known as Churchill Capital Corp. III (“Churchill III”) (NYSE: CCXX), on behalf of investors who purchased or acquired MPLN or CCXX securities between July 12, 2020 and November 10, 2020 (the “Class Period”).

Churchill III was formed in October 2019 as a special purpose acquisition (“SPAC”) vehicle, and on July 12, 2020, announced that it would combine with privately held MultiPlan. According to the complaint, in connection with the proposed combination Churchill III filed a defective proxy statement with the SEC on September 18, 2020, which contained numerous materially false and misleading statements and omissions. On the basis of the defective proxy statement, on October 7, 2020, Churchill III investors voted to approve the business combination.

On November 11, 2020, one month after the close of the Merger, Muddy Waters published a report entitled “MultiPlan: Private Equity Necrophilia Meets the Great 2020 Money Grab.” Among other things, the report reveled that: (i) MultiPlan was in the process of losing its largest client, UnitedHealthcare, which was estimated to cost Churchill III up to 35% of its revenues and 80% of its levered free cash flow within two years; (ii) MultiPlan was in significant financial decline because of its fundamentally flawed business model, which profited from excessively high healthcare costs; (iii) UnitedHealthcare had purportedly launched a competitor, Naviguard, to reduce its business with MultiPlan and bring the over-priced and conflicted services offered by MultiPlan inhouse; and (iv) MultiPlan had suffered from material, undisclosed pricing pressures that had caused it to slash the “take rate” it charged customers in half in some instances and falsely characterized revenue declines as “idiosyncratic” when in fact they were due to sustained, negative pricing trends afflicting MultiPlan’s business. Following this report, shares of MultiPlan’s stock significant declined in value, and currently trade below $7.00 per share.

MultiPlan investors who purchased or acquired CCXX securities prior to October 7, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by email at skaskela@kaskelalaw.com or online at https://kaskelalaw.com/case/multiplan-corp/, for additional information about this action and their legal rights and options.

Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

CONTACT:
D. Seamus Kaskela, Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
(484) 258 – 1585
(888) 715 – 1740
www.kaskelalaw.com
skaskela@kaskelalaw.com