MSP Recovery, Inc. Announces Conclusion of SEC Investigation: No Intention to Recommend Enforcement Action Against the Company, its CEO, John H. Ruiz, or its Officers
Rhea-AI Summary
MSP Recovery (NASDAQ:MSPR) announced that SEC staff has concluded its more-than-three-year investigation and does not intend to recommend enforcement action against the company, CEO John H. Ruiz, or its officers.
The investigation began on August 11, 2022 and concerned the May 23, 2022 business combination with Lionheart Acquisition Corporation II, historical and projected financial results, investor agreements, data analytics, and the restatement of quarterly financials for periods ended June 30, 2022 and September 30, 2022. The company said it fully cooperated and devoted significant resources to the inquiry.
Positive
- SEC staff will not recommend enforcement action
- Investigation formally concluded after 3+ years
- Company fully cooperated with subpoenas and requests
- Clears regulatory overhang for near-term operations
Negative
- Quarterly financial statements for 6/30/2022 and 9/30/2022 require restatements
- Company and personnel received subpoenas during the investigation
- Investigation consumed significant resources over multiple years
News Market Reaction
On the day this news was published, MSPR gained 6.72%, reflecting a notable positive market reaction. Argus tracked a peak move of +30.6% during that session. Argus tracked a trough of -8.6% from its starting point during tracking. Our momentum scanner triggered 32 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $410K to the company's valuation, bringing the market cap to $7M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
The momentum scanner shows MSPR moving down alongside HCTI and MGRX (both down), while POAI is up. Two peers moving in the same downward direction, with sector commentary noting a median move of about -5.5%, suggests broader weakness in related names rather than a purely company-specific move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Aug 29 | Financing term sheet | Positive | +7.7% | Prospective secured term loan facility of up to $55 million. |
| Aug 28 | Reverse stock split | Neutral | +4.2% | 1-for-7 reverse split to address Nasdaq minimum bid requirement. |
| Jul 15 | Legal court ruling | Positive | -1.0% | Maryland Supreme Court upholds assignments enabling GEICO class action. |
Recent news reactions are mixed: financing and corporate actions drew modest gains, while a favorable legal ruling saw a slight decline, indicating that upside on positive headlines has not been consistent.
Over the past few months, MSPR announced a prospective $55 million secured term loan facility, a 1-for-7 reverse stock split to address Nasdaq bid-price compliance, and a significant legal win enabling a class action against GEICO. Price reactions to these events ranged from about -1% to +8%, showing uneven sensitivity to both capital-structure moves and legal milestones. Today’s conclusion of the SEC investigation fits into a stream of regulatory and legal developments against a backdrop of severe financial strain in recent filings.
Market Pulse Summary
The stock moved +6.7% in the session following this news. A strong positive reaction aligns with the favorable closure of the SEC investigation, which involved MSPR’s Business Combination, projections, and prior restatements. However, recent SEC filings show extremely weak liquidity, heavy losses, going‑concern warnings, and ongoing Nasdaq delisting risk, all of which may cap longer‑term enthusiasm. Past news has produced mixed follow‑through, so any large move above $0.32 would have to contend with this stressed balance sheet.
Key Terms
u.s. securities and exchange commission regulatory
business combination financial
subpoenas regulatory
quarterly financial statements financial
data analytic platforms technical
algorithms technical
AI-generated analysis. Not financial advice.
MIAMI, FLORIDA / ACCESS Newswire / December 7, 2025 / MSP Recovery, Inc. (NASDAQ:MSPR) (the "Company"), a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery and technology leader, announces that the staff of the U.S. Securities and Exchange Commission ("SEC") has informed the Company that it has concluded its investigation relating to MSP Recovery, Inc., and does not intend to recommend enforcement action to the Commission against the Company, its CEO, John H. Ruiz, or its officers.
As previously disclosed, on August 11, 2022, the SEC initiated an investigation of the Company, and requested documents relating to, among other matters, the Business Combination transaction with Lionheart Acquisition Corporation II, consummated on May 23, 2022, certain historical and projected financial results, investor agreements, and data analytic platforms and algorithms. The Company and certain key personnel received subpoenas during the course of the investigation seeking information regarding, among other things, the Company's projections and the accounting and valuation of certain assets that were the basis for the Company's determination that its quarterly financial statements for the periods ended June 30, 2022 and September 30, 2022 require restatements and should no longer be relied upon, certain funding sources of the Company prior to the Business Combination, various statements and disclosures by the Company in connection with, and following the Business Combination, certain historical and projected financial results, and data analytic platforms and algorithms used to identify potential recoveries.
The Company fully cooperated with the SEC, responding to subpoenas and information requests, and devoted significant resources to providing regulators with data, documents, and access to personnel. Chairman and CEO John H. Ruiz stated, "From day one, MSP Recovery cooperated fully with regulators and let the facts speak for themselves. We are pleased that after reviewing extensive information over more than three years, the SEC staff has concluded its investigation without recommending enforcement action against the Company or its officers. MSP Recovery can now continue its mission without the burdensome costs, time and resources associated with an SEC investigation."
About MSP Recovery, Inc.
Founded in 2014, MSP Recovery has become a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery leader, disrupting the antiquated healthcare reimbursement system with data-driven solutions to secure recoveries from responsible parties. MSP Recovery innovates technologies and provides comprehensive solutions for multiple industries including healthcare and legal. For more information, visit: msprecovery.com.
Forward‑Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance or results and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by MSP Recovery herein speaks only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for the Company to predict or identify all such events or how they may affect it. MSP Recovery has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, the SEC changing its position on the outcome of its investigation of the Company, and those risk factors included in MSP Recovery's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by it with the Securities and Exchange Commission. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995.
Contact: Media@msprecovery.com
SOURCE: MSP Recovery, Inc.
View the original press release on ACCESS Newswire
FAQ
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