MSP Recovery stock plunges 33% as company issues statement disputing recent Forbes story

May 26, 2022 4:42 PM ETMSPRBy: Val Kennedy, SA News Editor1 Comment

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MSP Recovery (MSPR) stock plunged again on Thursday after the newly public company released a statement disputing a recent article published by Forbes that questioned the monetary value of its potentially recoverable claims.

Shares of MSPR opened at $3.65 on Thursday, sliding to finish the session at $2.51, down 33% from the prior session.

The stock has steadily lost ground since the company went public on Tuesday through a merger deal with SPAC Lionheart Acquisition Corp. II that pegged the combined company with an enterprise value of around $32.6B. MSPR shares closed at $5.06 after their market debut on Tuesday, down 53% from their pre-merger close of $10.78 on Monday.

Earlier Thursday, MSPR reaffirmed its 2022 guidance of gross revenue of at least $922M. The company also issued a lengthy statement disputing a recent Forbes article about the monetary value of its potentially recoverable claims.

“Specifically, the Forbes piece stated that MSPR's ‘central tension’ is that it has not litigated its claims and therefore it is difficult to assess its monetary value,” MSPR said in its statement.

“But MSPR's SEC filings and court record filings demonstrate that MSPR's claims and data processes have been substantiated by significant court victories," MSPR added.

The merger between MSPR and Lionheart was approved by Lionheart shareholders on May 19.

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