Court Adopts $22 Million Clover Health Settlement With Investors

The settlement in a class action filed by investors, claiming that Clover Health Investments Corp. misled them before going public, was formally approved by a federal court.

The investors said that Clover Health, a Medicare Advantage-focused insurer, headed into a merger without disclosing that the merged company was intended to “disrupt” the Medicare Advantage insurance niche by using artificial intelligence to help doctors capture a patient’s full health risk profile. They also said that the merger deal crossed over into fraud and kickbacks and sparked a Department of Justice investigation.

In May, the parties reached an agreement to settle the ...