A U.S. judge has ruled that venture investor Chamath Palihapitiya, Clover Health Investments and its executives must face a lawsuit that claims they misled investors about the health insurance company when it went public via one of Palihapitiya’s many SPACs, Reuters reports.
U.S. District Judge Aleta Trauger in Nashville yesterday declined to dismiss the case, allowing investors to proceed with allegations Clover lied about the source of its growth and the existence of a U.S. Department of Justice probe into the company.
Social Capital Hedosophia III took Clover Health public in January 2021 in a deal valued at $728 million. Read more.
