Why Shares of Clover Health Jumped This Week
Shares of Clover Health Investments (NASDAQ: CLOV) were up by 18% for the week as of 2:15 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence. The healthcare insurance services company's stock closed last week at $0.9984, then rose to as high as $1.24 on Thursday after the company said it had settled seven derivative lawsuits.
The lawsuits, which were pending in Delaware, New York, and Tennessee courts, were part of civil litigation that was filed following Clover's de-special purpose acquisition company (SPAC) transaction in 2021.
Clover said both sides had entered into a memorandum of understanding. The settlement doesn't involve any monetary payment other than fees and expenses to plaintiffs' lawyers. Clover denied all wrongdoing and said it entered into the settlement to end the costs of continuing litigation. In April, the company had settled for $22 million, a securities class action suit connected to the de-SPAC.
Source Fool.com
