Clover Health Settles Investors’ Class Action for $22 Million

Clover Health Investments Corp. investors who alleged the Medicare Advantage-focused insurer misled them before going public asked a federal court to preliminarily approve a $22 million settlement.

The deal represents a recovery of about 13.2% of estimated losses, the investors told the US District Court for the Middle District of Tennessee Thursday. That’s well above the 1.8% median for securities class actions in 2022, they said.

A derivative suit over the same issues was filed in 2021 in the Delaware Chancery Court against some of the company’s directors, including Chelsea Clinton. That suit is paused while other litigation, including ...