The US Securities and Exchange Commission and the Department of Justice are investigating insurance reimbursement company LifeWallet, the company has said.
The SEC’s investigation, which the company disclosed late Tuesday, was launched in August 2022. It focuses on documents related to LifeWallet’s May 2022 merger with Lionheart Acquisition II, Bloomberg reportsI.
The company received SEC subpoenas in March and May requesting documents about its financial statements, including details on asset valuation errors that required it to restate, or redo, two quarterly financial statements, the company, formerly known as MSP Recovery, said in its securities filing.
LifeWallet was valued at $32.6 billion in its May 2022 merger with Lionheart Acquisition II, the largest such combination up to that time in the US as measured by enterprise value.
On May 24, its public markets debut on the Nasdaq, LifeWallet plunged more than 60% to $3.85 less than an hour after the open. Read more.
