Chamath Palihapitiya-backed Clover Health Investments (CLOV) said on Feb. 5 it received a notice of investigation from the Securities and Exchanges Commission (SEC) and that intends to cooperate.
However, Clover also pushed back against a critical report from short-selling specialist Hindenburg Research. The company said that some claims in the report were “completely untrue.”
Hindenburg published the report on Feb, 4, which called Clover Health a “broken business,” sending the insurance firm’s shares down over 12%. This was their largest daily percentage drop in four months. Hindenburg has a history of publishing short-selling research but said on Feb. 4 it does not hold a position in Clover.
Additionally, Hindenburg said Clover was under investigation from …