Palihapitiya-backed Clover Health gets notice of SEC investigation

Chamath Palihapitiya-backed Clover Health Investments Corp said on Friday it had received a letter from the U.S. Securities and Exchange Commission and that it intends to cooperate with the investigation.

Clover, however, pushed back against a critical report from short-selling specialist Hindenburg Research, saying some claims in the report were "completely untrue".

On Thursday, Hindenburg published a scathing report, the title of which called Clover Health a "broken business," sending the insurance firm's shares down more than 10%, their biggest daily percentage drop in four months.