MSP recovery spac everything about MSP

MSP Recovery SPAC: Everything you need to know about MSP Recovery

MSP Recovery SPAC: What do we know about the MSP Recovery SPAC?

The MSP Recovery SPAC will see the healthcare litigation business merge with blank cheque company Lionheart Acquisition Corp II, which recently raised $250 million in its own IPO.

The transaction will mean the combined company is listed on Nasdaq with a potential valuation of $32.6 billion, with the transaction expected for Q4 2021.

Want to trade more IPOs? Visit our IPO trading page.

How to trade MSP Recovery shares

When MSP Recovery lists, you’ll be able to trade MSP Recovery shares in the same way you would any other publicly-traded company on the stock market.

You can trade stocks with us via these easy steps:

Open an account, or log in if you’re already a customer
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

How much is MSP Recovery worth?

MSP Recovery would reportedly be worth an estimated $32.6 billion if all goes to plan with the SPAC, with around $230 million provided by Lionheart Acquisition Corp II.

What does MSP Recovery do?

Started in 2014, MSP Recovery Innovation is a Florida, US-based litigation company focused on recovering secondary insurance payments. Through legal action, it will seek to obtain reimbursements for clients such as government-funded healthcare programs Medicare and Medicaid, as well as commercial insurance and other healthcare organisations, from parties that the company believes should have paid the claims in the first place.

MSP Recovery buys the claims at a steep discount before pursuing the liable parties for the full amount and sharing the proceeds if the litigation succeeds.

CEO John Ruiz says that around 11% of the annual $1.6 trillion Medicaid and Medicare spend is recoverable.

The company has developed algorithms that it says help it identify claims that have been erroneously paid. Effectively, shareholders will receive a stake in the value of these claims upon collection. That said, the company does not generate cash as of yet.

As of August 2021, Crunchbase lists the employee count of the company as 11-50.

Who are MSP Recovery’s competitors?

MSP Recovery has numerous competitors that make money through litigation in the same manner. However, Ruiz believes the algorithm that scours medical records to find suitable claims is the secret weapon to set his company apart from the pack.

How does MSP Recovery make money?

MSP Recovery makes money through recovering Medicare and Medicaid secondary insurance payments, as outlined above. The company is projecting revenues of some $1 billion in 2022, rising to $23 billion in 2026.

Is MSP Recovery profitable?

MSP Recovery is not yet profitable as it does not expect to generate any cash in 2021. Any proceeds of litigation that eventually come in will be shared with the government programs (50%), as well as law firms (up to 20%), with the remainder going to MSP.

What is MSP Recovery's business strategy?

MSP Recovery’s business strategy will, as mentioned, entail the ongoing pursuit of recoverable monies as identified by its algorithms. Most recently in August 2021, the company filed a whistleblower lawsuit against 315 automobile insurers in a bid to recover a sum that could be worth billions of dollars.

MSP Recovery asserts that the companies involved deliberately filed false reports that failed to acknowledge their obligations as required by federal law. The filing has been described as potentially one of the largest whistleblower lawsuits in US history.

The month prior, the company filed a lawsuit against JT Thorpe Settlement Trust, a fund that disperses settlement payments to asbestos injury victims. The move came as the first instalment of a plan to target a range of similar organisations that MSP says failed to divulge settlement payments and deliver reimbursement to health care service providers.

Directors of MSP Recovery

John Ruiz – Chief Executive Officer

Naisleth Rodriguez – Corporate Counsel/Chief Procurement Officer

Eddy Cancela – Vice President, Business Development

Damir Perez – Lead Software Developer

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.