Embattled financial firm to sell partial stake in insurance

Share to Twitter Share to Linkedin I n July last year , trial lawyer John H. Ruiz triumphantly declared his Medicare and Medicaid litigation and technology firm MSP Recovery to be worth a whopping $32.6 billion , as he announced plans to go public by merging with a special purpose acquisition company. The catch? Coral Gables, Florida-based MSP Recovery, which uses its “proprietary algorithms” to identify medical claims that should have been paid by other insurers instead of the government-funded healthcare programs, had no revenue. On Tuesday, MSP Recovery completed its reverse merger with Lionheart Acquisition Corporation II – the already-listed blank check company – and began trading on the NASDAQ under the ticker MSPR. But it wasn’t an auspicious start. Shares plummeted 53% from Lionheart’s $10.78 close on Monday to the newly listed MSP’s $5.06 at the close of trading on Tuesday. Despite the drop, it was still a good deal for founder and CEO … [Read more...] about Despite Falling Stock Of This Medicare Litigation Firm, Its SPAC Deal Mints Two Billionaires

- A + A (May 25): Hundreds of people took to the streets of the largest city in China’s Henan province this week, calling on authorities to ensure the return of tens of billions of yuan invested in what could be one of the nation’s largest financial scams. Protesters gathered outside the local office of the China Banking and Insurance Regulatory Commission on Monday in Zhengzhou city, carrying signs that read “Return my savings,” according to half a dozen people familiar with the matter, who asked not to be named discussing a sensitive subject. The crowd was dispersed by police and told to return home as soon as possible, the people said. The protest, unusual for China, followed a freeze in online and mobile cash withdrawal services by four banks in Henan. A subsequent probe found that Henan Xincaifu Group Investment Holding Co, a private investment firm with stakes in all four lenders, colluded with bank employees to illicitly attract public funds via online … [Read more...] about China protesters demand back billions invested in suspected scam

The consumer finance industry has registered a 22.30% year-to-date (YTD) gain on the back of record low unemployment, steady wage growth, and high readings of consumer confidence. However, a wave of selling swept across credit services stocks Monday as recession fears regained traction, stoked by increasing global trade disputes and a fall in the benchmark 10-year Treasury note that has led to a partial inversion of the yield curve . Reports of possible government antitrust investigations on tech giants also weighed on stocks in the space. As antitrust probes heat up on FAANG members, investors may start to consider what impact they will have on existing and future strategic partnerships with leading credit services players. In particular, tightening privacy regulations could thwart credit card companies sharing transaction trends with large tech companies. From a valuation perspective, large-cap payment processing companies trade at high earnings multiples , suggesting … [Read more...] about Check Out of Credit Services Stocks