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Hindenburg alleges Palihapitiya's Clover Health faces 'undisclosed' DOJ probe

Hindenburg Research, which is best known for short reports, has issued a cautious report on Clover Health in which it claims to "reveal how Clover Health and its Wall Street celebrity promoter, Chamath Palihapitiya, misled investors about critical aspects of Clovers business in the run-up to the companys SPAC go-public transaction last month." According to Hindenburg, Clover "has not disclosed that its business model and its software offering, called the Clover Assistant, are under active investigation by the Department of Justice, which is investigating at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals, according to a Civil Investigative Demand (similar to a subpoena) we obtained." Hindenburg added: "Given that investors are paying over a quarter billion dollars for Chamaths due diligence, we think they deserve to know whether Chamath knew of these issues and concealed them, or whether he simply failed to notice them at all." Hindenburg noted that the firm has "no position (short or long) in Clover Health because we think in this moment for public markets, it is more important for people to understand the role short sellers play in exposing fraud and corporate malfeasance." [Reference Link]:[https://hindenburgresearch.com/clover/]