MSP Recovery (LifeWallet)

ChapmanAlbin is investigating potential claims on behalf of investors who suffered losses after purchasing shares of MSP Recovery, formerly doing business as LifeWallet (LIFW), through a financial advisor or brokerage firm.

MSP Recovery, now traded under the ticker MSPRW, presents itself as a company focused on recovering improperly paid healthcare claims, particularly those involving Medicare and Medicaid. However, investors have faced steep losses following a series of financial and operational issues tied to the company.

LifeWallet’s troubles include:

• An April 2023 announcement that its quarterly financial statements for June and September 2022 “should no longer be relied upon,” requiring restatements. The stock dropped significantly afterward.

• Massive revenue shortfalls, including one year in which only $21.79 million was reported versus a $992 million projection.

• Serious debt concerns, including high-interest loans and ongoing renegotiations of terms.

• Civil and criminal investigations related to its business practices.

• An SEC filing in August 2024 stating “substantial doubt” about the company’s ability to continue as a going concern.

• Potential dilution of share value due to possible issuance of new stock to service debt.

These red flags raise serious questions about whether financial advisors and brokerage firms conducted proper due diligence before recommending or selling LifeWallet stock to retail investors. Firms are obligated to evaluate whether an investment is suitable based on each customer’s risk tolerance, financial goals, and overall investment profile.

If you purchased LifeWallet (MSP Recovery) stock at the recommendation of a broker or adviser and experienced losses, you may be eligible to pursue recovery through a FINRA arbitration claim.

Call 1-877-410-8172 or visit chapmanalbin.com to schedule a free consultation.