RM LAW, P.C. 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 shareholders may, no later than April 25, 2021, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Churchill III and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
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 complaint further alleges that, 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 revealed 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.
If you are a member of the class, you may, no later than April 25, 2021, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.