Case Background:
This is a federal securities fraud class action lawsuit on behalf of investors in MultiPlan Corp. (“MultiPlan”) f/k/a Churchill Capital Corp. III (“Churchill III”) that (1) purchased or otherwise acquired MultiPlan securities between July 12, 2020 and November 10, 2020, inclusive (the “Class Period”); and/or (2) were 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”) consummated in October 2020 (the “Merger”).
Churchill III was formed in October 2019 as a special purpose acquisition vehicle. On February 14, 2020, Churchill III completed its initial public offering (“IPO”), selling 110 million ownership units to investors for gross proceeds of $1.1 billion. Pursuant to the IPO prospectus, Churchill III was required to acquire a target business with an aggregate fair market value of at least 80% of the assets held in trust from the IPO proceeds and to do so within two years of the February 2020 IPO.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) MultiPlan was losing tens of millions of dollars in sales and revenues to its competitor, Naviguard, which threatened up to 35% of Churchill III’s sales and 80% of its levered cash flows by 2022; (2) sales and revenue declines in the quarters leading up to the Merger were not due to “idiosyncratic” customer behaviors as represented, but rather due to a fundamental deterioration in demand for MultiPlan’s services and increased competition; (3) MultiPlan was facing significant pricing pressures for its services and had been forced to materially reduce its take rate in the lead up to the Merger by insurers; (4) as a result of the foregoing, MultiPlan was set to continue to suffer from revenues and earnings declines, increased competition and deteriorating pricing dynamics following the Merger; and (5) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On September 14, 2021, Lead Plaintiff filed a Notice of Voluntary Dismissal, and the Court dismissed the case on September 15, 2021. This action has concluded.
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ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.