Clover Board, With Chelsea Clinton, Sued Over $3.7B SPAC Deal

A Clover Health Investments Corp. shareholder filed suit in Delaware against members of its board, including Chelsea Clinton, claiming they hid a Justice Department probe into the health technology company’s billing practices before taking it public through a $3.7 billion blank-check merger.

The lawsuit, made public late Tuesday in Delaware Chancery Court, targets the former first daughter, three other Clover directors, and the founder of Social Capital Hedosophia Holdings Corp. III, the “special purpose acquisition company” Clover combined with before its Nasdaq debut in January.

SPACs, also called blank-check companies, are publicly traded entities raising money on the promise of ...