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Clover Health Provides Notice Associated with Previously Disclosed Settlement of Shareholder Derivative Actions
FRANKLIN, Tenn., April 04, 2024 (GLOBE NEWSWIRE) -- As previously disclosed, most recently in its Annual Report on Form 10-K for the fiscal year ended
About this update from Clover Health Investments, Corp.
[{"type":"text","content":"FRANKLIN, Tenn., April 04, 2024 (GLOBE NEWSWIRE) -- As previously disclosed, most recently in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023, Clover Health Investments, Corp. (the \"Company\") has reached an agreement to resolve shareholder derivative actions pending in four jurisdictions. The actions are captioned: (1) Sun v. Garipalli, et al., No. 3:21-cv-0311 (M.D. Tenn.); (2) In re: Clover Health Investments Corp. Derivative Litig., No. 1:21-cv-00191 (D. Del.); (3) In re Clover Health Investments, Corp. Stockholder Derivative Litig., Index No. 655420/2021 (N.Y. Sup. Ct., N.Y. Cnty.); and (4) Davies v. Garipalli, et al., No. 2021-1016-SG (Del. Ch.) (collectively the \"Shareholder Derivative Actions\"). The Shareholder Derivative Actions were filed in the wake of the Company's de-SPAC transaction. As previously disclosed, on February 5, 2024, the plaintiffs in the Shareholder Derivative Actions, on the one hand, and the Company, on the other hand, executed a Stipulation and Agreement of Settlement dated February 2, 2024 (the \"Stipulation\"), which, subject to final court approval, provides the defendants in the Shareholder Derivative Actions with customary releases and, as previously disclosed, will require the Company to implement a suite of corporate governance enhancements (the \"Settlement\"). The Settlement does not involve any monetary payment, other than payment of an award of fees and expenses to plaintiffs' counsel in the amount of $2.5 million, which remains subject to final court approval. The Settlement is subject to definitive documentation and final court approval. On March 5, 2024, the United States District Court for the Middle District of Tennessee entered an Order Preliminarily Approving Settlement and Providing for Notice, and scheduled a hearing for July 11, 2024 to determine whether to give final approval to the Settlement. A copy of the Stipulation and exhibits thereto, which include formal Settlement notices directed to current Company stockholders and provide detail regarding the Settlement, are available on the Company's investor relations website at https://investors.cloverhealth.com/. Forward-Looking StatementsPlease note that this press release contains forward-looking statements wi...