SAN DIEGO--(BUSINESS WIRE)--Robbins LLP informs investors that a shareholder filed a class action on behalf of persons or entities who: (1) purchased or otherwise acquired publicly traded MSP Recovery f/k/a Lionheart Acquisition Corp. II (NASDAQ: LIFW) securities between April 28, 2022 and August 17, 2023; (2) held Lionheart common stock eligible to vote at Lionheart’s May 18, 2022 special meeting; and (3) purchased or otherwise acquired MSP Recovery securities pursuant and/or traceable to the Company’s registration statement filed with the SEC on July 1, 2022. MSP Recovery commonly does business under the name “LifeWallet” and describes itself as a “leading data analytics company specializing in healthcare Claims recovery."
For more information, submit a form, email Aaron Dumas, Jr., or give us a call at (800) 350-6003.
What is this Case About: MSP Recovery, Inc. (LIFW) Failed to Disclose Material Information to Investors
According to the complaint, during the class period, defendants failed to disclose that: (1); MSP Recovery did not disclose that it was under active investigation by the SEC and federal prosecutors; (2) certain financial information given to investors by MSP Recovery was materially false and misleading; (3) MSP Recovery did not fully disclose the extent of its issues when it admitted that its financial results would need to be restated; (4) MSP Recovery was unable to afford the assigned claims on which it depends, and defrauded a major healthcare provider that sold or assigned it its claims; (5) the Registration Statement contained various false or misleading statements and was negligently prepared; and (6) the Proxy contained false or misleading statements.
On July 31, 2023, The Miami Herald released an article detailing that MSP Recovery was the target of federal and criminal investigations. The articled relayed that MSP Recovery was once valued at more than $23 billion, but was trading for less than a quarter and was facing lawsuits claiming defendants owe millions of dollars to the sellers of businesses they acquired. On this news, MSP Recovery's stock price fell almost 6%.
On August 1, 2023, the Company filed with the SEC a report on Form 8-K, which confirmed the Miami Herald's allegations. On this news, the Company's stock price fell over 12%. That same day, Cano sued the Company for nearly $67 million. MSP Recovery's stock price fell over 18% on this news.
Finally, on August 17, 2023, MSP Recovery disclosed it had received a notification letter from Nasdaq's Listing Qualifications Department stating that the Company was not in compliance with Nasdaq's Rule 5250(c)(1) as a result of not having timely filed its Form 10-Q for the period ended June 30, 2023. On this news, the Company's stock fell over 19% over two days.
What Now: Similarly situated shareholders may be eligible to participate in the class action against MSP Recovery, Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by October 23, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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