Kaskela Law LLC announces that the shareholder class action lawsuit against MultiPlan Corp. (“MultiPlan” or the “Company”) (NYSE: MPLN), formerly known as Churchill Capital Corp. III (“Churchill III”) (NYSE: CCXX), has survived a motion to dismiss. Among other things, the complaint seeks monetary damages for eligible MultiPlan investors.
Investors who purchased or acquired CCXX or MPLN securities prior to September 14, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (888) 715 – 1740, or by email at [email protected], for additional information about this action. Investors may also submit their information to the firm for review via the form on this page.
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. The Churchill III – MultiPlan merger (the “Merger”) closed on October 8, 2020.
As detailed in the complaint, one month after the Merger, on November 11, 2020, research firm Muddy Waters published a report entitled “MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab” (the “Report”). In the Report, Muddy Waters exposed MultiPlan as a rapidly deteriorating business, highlighting a number of facts that were either entirely omitted or misleadingly characterized in the Proxy and/or other public disclosures concerning the Merger. Following this Report, shares of MultiPlan’s stock significant declined in value, and currently trade at approximately $6.00 per share.
On January 3, 2022, Vice Chancellor Will denied defendants’ motions to dismiss the complaint, paving the way for litigation to proceed. A copy of the Court’s Memorandum Opinion is available upon request, or may be reviewed online at Download.aspx (delaware.gov).
MultiPlan investors are encouraged to complete the form on this page for additional information about this action, and their legal rights and options.