Clover Health Says SEC Investigating Following Short-Seller Report; Shares Rise Pre-Bell
08:50 AM EST, 02/05/2021 (MT Newswires) -- Clover Health Investments Corp. (CLOV) said Friday it has received a letter from the Securities and Exchange Commission informing it that the agency is conducting an investigation into the company related to "certain matters" referenced in an article by short-seller Hindenburg Research.
The company said the SEC requested document and data preservation for the period of Jan. 1, 2020 to the present, and that it intends to cooperate with the investigation.
CEO Vivek Garipalli and President Andrew Toy said in a statement that the Hindenburg article was "rife with ad-hominem attacks, sweeping inaccuracies and gross mischaracterizations."
Shares of Clover Health rose more than 3% in premarket trading.
Price: 12.71, Change: +0.48, Percent Change: +3.92