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Sternlicht Sees Clover Health as Sign SPACs Need Reining In

  • SPAC projections mislead investors, Sternlicht tell forum
  • Clover went public in 2020 and is now under SEC investigation
Barry Sternlicht
Barry SternlichtPhotographer: Michael Nagle/Bloomberg
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Property billionaire Barry Sternlicht said special purpose acquisition companies need more oversight from the U.S. Securities and Exchange Commission, and pointed at Clover Health Investments Corp. as a sign of a bubble.

“The stock market is detached from reality,” he said in a virtual panel discussion on Wednesday at Bloomberg’s Qatar Economic Forum. “Clover Health Care is basically a fraud, is trading at $16 a share, and it keeps going up. The more you say it is going out of business, the higher the stock goes.”