MSP Recovery, LLC’s (“MSP Recovery” or “MSPR”) Class A Common Stock
began trading on May 24, 2022 on Nasdaq under the symbol “MSPR”
following the completion of a business combination with
Lionheart Acquisition Corporation II (“LCAP”). MSPR recently
announced substantial business expansion through development of
additional revenue streams, monetization of assignor interests,
growth of assignors and existing business, and continued
innovation. MSPR has also reaffirmed revenue guidance that will
either match or surpass the $992 million in gross revenue for 2022
set forth in its models.
During the SPAC process and over the last 8 years, MSPR
underwent significant due diligence and auditing of systems,
technology, and financials. Every step of the way, MSPR’s business
withstood that scrutiny and its business model has been vetted and
underwritten by more than 150 entities such as health plans,
providers and institutional investors throughout the country. “We
encourage investors and the public to visit MSPR’s website where
they can find MSPR’s SEC filings and press releases describing the
business, claims portfolio, and recovery process,” said MSP
Recovery Founder and CEO, John H. Ruiz.
Despite that process, Forbes recently published an article that
“selectively reported on certain portions of MSPR’s public filings
and was based on a faulty premise,” said Ruiz. 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. But MSPR’s SEC filings and court record
filings demonstrate that MSPR’s claims and data processes have been
substantiated by significant court victories – including
evidentiary hearings, and state and federal trial and appellate
courts – and have resulted in settlements and favorable court
rulings.
MSPR’s recovery efforts have been ongoing since 2014 – when MSPR
was originally founded and began trailblazing and revolutionizing
the healthcare industry. In that short time frame, MSPR has already
developed a book of business that by the end of 2021 amounted to
more than $1.5 trillion in billed amount and $364.4 billion in paid
amount. It has also innovated first of its kind, proprietary
software systems, and has forged forward with litigation that has
resulted in multiple significant victories establishing substantive
law on healthcare claims data and the Medicare Secondary Payer Act.
As stated in MSPR’s S4, settlement agreements to recover amounts in
excess of the paid amount were entered into in MSPA Claims 1, LLC
v. Ocean Harbor Cas. Ins. Co., Case No. 2015-1946-CA-01, and in MSP
Recovery Claims, Series LLC v. Horace Mann Insurance Company, Case
No. 1:20-cv-24419. And MSPR has also, through its relentless
pursuit of recoveries, established critical substantive law in the
area of its healthcare recoveries, including: (1) establishing that
secondary payers have the ability to pursue recovery from primary
payers for failing to make primary payment in accordance with a
contractual obligation, without judgment or settlement agreement
from separate proceeding (MSP Recovery, LLC v. Allstate Ins. Co.,
835 F.3d 1351 (11th Cir. 2016)); (2) rejecting that the
claims-filing provision imposing timeliness requirement as
prerequisite to filing suit to seek reimbursement for payments made
on behalf of Medicare beneficiary (MSPA Claims 1, LLC v. Kingsway
Amigo Insurance Company, 950 F.3d 764 (11th Cir. 2020)); and (3)
establishing that downstream actors that have made conditional
payments in an MAO's stead or that have reimbursed an MAO for its
conditional payment to bring suit for double damages against the
primary payer (MSP Recovery Claims, Series LLC v. ACE Am. Ins. Co.,
974 F.3d 1305, 1316 (11th Cir. 2020)).
In Ocean Harbor, MSPR was granted class certification and
obtained approval of a class action settlement agreement, pursuant
to which, subject to certain time and threshold limitations, Ocean
Harbor has agreed to pay more than the Medicare Fee-for-Service
Schedule Rate by 3.5 times, for Medicare Part A emergency services
and Medicare Part D claims, and by 1.6 times, for Medicare Part A
non-emergency services, claims for MRI services and Medicare Part B
claims. In Horace Mann, MSPR entered into a settlement agreement in
which the defendant agreed to pay matched claims according to
applicable commercial rates, subject to the assertion of certain
agreed upon defenses. MSPR believes that “the difference between
the paid amount of claims in that case and commercial rates would
generally be between 4 to 6 times,” said Ruiz.
Moreover, as disclosed to the public on April 16, 2022, MSPR’s
litigation efforts have resulted in significant progress toward
settlement of claims with various liability insurers. Under the
framework, liability insurers have agreed to exchange data – out of
court – in pursuit of a full settlement of current no-fault
litigation. Together with the law firms of Milberg Coleman Bryson
Phillips Grossman, PLLC and Rivero Mestre, LLP – with which MSPR
recently announced significant strategic alliances – more resources
than ever are being committed to additional MSPR reimbursement
recovery cases.
MSPR also recently announced significant additional revenue
streams. MSPR acquires the assignments of its recoveries from
health insurance payors, healthcare providers and self-funded
entities, and uses its proprietary multi-level data analytics
system to secure recoveries from responsible parties. MSPR
typically pays the assignors 50% of such recoveries (the “Assignor
Interest”) and retains the rest (the “MSPR Recovery Proceeds”).
Among the new potential sources of revenue, on September 30,
2021 MSPR announced an agreement providing for potential future
transactions to monetize up to $3 billion of select healthcare
claims recovery interests to Virage Capital Management LP
(“Virage”). The Virage agreement presents an opportunity for MSPR
to monetize the Assignor Interests (typically 50% of the total
recovery amount) associated with select healthcare recovery claims,
while preserving MSPR’s interests in the MSPR Recovery Proceeds.
Indeed, MSPR has already reached an agreement to monetize an
initial $275 million under the Virage agreement earmarked for
acquisition of Assignor Interests. This additional recovery
opportunity provides an additional potential avenue for MSPR to
expand its revenue streams.
MSPR has several other new and expanding revenue streams,
including but not limited to:
- MSPR’s expansion into representing
states and attorneys general in pursuing recoveries for improper
Medicaid payments.
- On January 10, 2022, LifeWallet
Powered by MSP Recovery was launched. LifeWallet is a consumer
application designed to help save lives, by facilitating first
responders and healthcare providers to enable informed
decision-making and provide improved patient care. LifeWallet has
been created with high security standards, and the private
information is protected on a HIPAA compliant platform.
- LifeWallet has also entered into
agreements with dozens of collegiate athletes in multiple countries
through “name image and likeness” (NIL) contracts, revolutionizing
college sports, capturing the medical information of young athletes
to help improve their medical care and patient outcomes, and
creating significant marketing opportunities for these athletes to
promote this new line of business. These international
spokespersons and marketing strategies will be important as
LifeWallet will be able to work in every country that utilizes the
ICD-10 coding system which is being implemented by World Health
Organization (WHO) member states. Approximately 27 countries use
ICD-10 for reimbursement and resource allocation in their health
system, and some have made modifications to ICD to better
accommodate its utility. The unchanged international version of
ICD-10 is used in 117 countries for performing cause of death
reporting and statistics.
- LifeWallet is also part of MSP
Recovery’s Chase to Pay platform, providing real-time analytics at
the point of care, helping identify the primary insurer, assisting
providers in receiving reasonable and customary rates for
accident-related treatment, shortening MSP’s collection time frame,
and increasing revenue visibility and predictability.
- The development of LifeChain – a
blockchain verified healthcare claims tokenization platform
protected by biometric security. Medical claims and records will be
received and processed through LifeChain enabling efficient
delivery of healthcare information. MSPR sees substantial business
expansion through blockchain incorporated into LifeWallet which
brings providers, patients, and payers into one ecosystem.
In addition to these new revenue streams, MSPR has continued to
grow its primary business. As of December 31, 2021, MSPR’s
portfolio included more than $1.5 trillion in billed amount
(reflecting the full amount billed by a provider to a health plan
or insurer), up more than 530% from $242 billion in 2020. MSPR’s
portfolio included $364.4 billion in paid amount as of the same
date (reflecting amounts actually paid to a provider from a health
plan), up more than 520% from $58.4 billion in 2020. And since
announcing the Business Combination in July 2021, MSPR has seen a
significant increase in interest from various entities in the
healthcare industry. During that time period alone, MSPR has:
vetted 91 prospects; made proposals to 48 entities; conducted data
diligence on 46 entities; generated a data evaluation report for 21
entities; and negotiated initial agreements with 20 entities. MSPR
already has over 150 assignors, and continues to grow its number of
assignors.
MSPR has also seen continued growth by way of the addition of
data and assignments from university healthcare and hospital
systems, as well as the expansion of assignments from significant
self-funded healthcare plans that pay for their own claims. For
example, MSPR recently entered into an assignment agreement with
MasTec, Inc., the second largest Hispanic-owned company in the
United States with over 20,000 employees in North America. MasTec
companies have been involved in some of the largest and most
complex infrastructure construction projects across the country and
with such a large pool of employees across the country has paid
significant numbers of claims across the country that should have
been reimbursed.
“We continue experiencing substantial growth of our billed
amounts, assigned claims and estimated paid amounts thanks to the
growing recognition by healthcare providers and payers of our
sophisticated and industry-leading legal, technological, and data
expertise relating to pursuing recoveries on their behalf,” said
MSP Recovery Founder and CEO, John H. Ruiz. “And we believe this
growth puts us in a strong position to meet, and even beat, our
financial models.”
MSPR’s substantial growth figures in paid amounts and billed
amounts are even more significant in light of recently announced
strategic alliances and progress towards the settlement of no-fault
litigation, wherein various liability insurers have formally agreed
to a framework to exchange data – out of court – in pursuit of a
full settlement of current no-fault litigation.
“There is a growing recognition among healthcare providers and
payers of the value of MSP Recovery’s innovative and effective
identification and pursuit of reimbursement recoveries on their
behalf, said Ophir Sternberg, Chairman and CEO of Lionheart. “MSP
Recovery’s ability to identify, pursue and secure new revenue
streams, incremental to the original business combination forecast,
provides significant upside to LCAP shareholders,” added
Sternberg.
MSPR expects significant continued growth as it continues
expanding its lines of business and the scale of its existing
business.
“We will continue to innovate and revolutionize the healthcare
industry and bring all resources at MSP Recovery’s disposal to bear
on solving these issues that have plagued the healthcare industry
for years,” said Ruiz.
MSP Recovery’s Historical Overview as of
Business Combination Announcement.
- Jul 12, 2021 - Lionheart Acquisition Corp. II
Announces Business Combination With MSP Recovery, a Leader in
Data-Driven Solutions, Recovering Improperly Paid Benefits on
Behalf of Medicare, Medicaid and Commercial Payers
- One of the top three largest SPAC transactions announced to
date.
- MSPR’s data-driven solutions discover improperly paid claims
out of the $3.6 trillion paid by healthcare payers yearly, and
pursues them against primary payers and responsible parties.
- Aug 12, 2021 - MSP Recovery Scores Major
Victory in Court Ruling Against IDS Property Casualty
- Ruling certifies a class action, enters judgment for entire
class and sanctions IDS for willfully violating court’s order.
- Ruling also confirms effectiveness of MSP Recovery’s systems
and data analytics in identifying that IDS, the defendant and a
Primary Payer, failed to report its Primary Payer obligations to
the government.
- Aug 18, 2021 - MSP Recovery Files
Whistleblower Lawsuit Against 315 Auto Insurers
- MSP Recovery’s qui tam complaint seeks to recover billions of
dollars for claims auto insurers should have paid but didn’t.
- Defendants include related entities of insurance groups Auto
Club Enterprises Insurance Group, Auto Owners Group, Berkshire
Hathaway Group, CSAA Insurance Group, Erie Insurance Group, Farmers
Insurance Group, Kemper Corporation Group, Liberty Mutual Group,
National General Group, Nationwide Corporation Group, Progressive
Group, State Farm Group, Travelers Group and United Services
Automobile Association Group.
- Sep 30, 2021 - MSP Recovery Enters into $3
Billion Agreement to Sell Select Healthcare Claims Recoveries to
Virage Capital Management, an Anticipated New Source of Revenue for
MSP
- Transaction to include assignments from healthcare insurance
payors, healthcare providers and self-funded entities.
- Oct 11, 2021 - MSP Recovery and Palantir
Partner to Transform Connectivity Across the U.S. Healthcare System
- A partnership to transform legal, data, and healthcare delivery
into one united ecosystem. MSP Recovery will provide the detailed
underlying legal, data and healthcare knowledge, utilizing Palantir
Foundry as the foundation of the data ecosystem.
- Oct 14, 2021 - MSP Recovery Announces Several
New Partnerships
- Synnova Health partnership is anticipated to improve MSP
Recovery’s platform by expanding its capabilities and maximizing
its efficiency, thereby improving outcomes for healthcare providers
and insurance carriers, among others.
- Tokenology partnership to combine blockchain-centric financial
technology with MSP Recovery’s strong data analytics platform. This
partnership will fuel a fully tokenized Medicare, Medicaid and
commercial recovery platform, leveraging the best-in-class
strategies and resources to provide secure and efficient blockchain
solutions.
- SirenMD partnership is anticipated to enable easier and more
efficient access to critical information to gain a better
understanding of patients’ health history, provide more accurate
diagnoses, and lead to improved care and treatment
- Nov 11, 2021 - Lionheart Acquisition
Corporation II Files a Registration Statement on Form S-4 in
Connection with Proposed Business Combination with MSP Recovery,
LLC
- Jan 10, 2022 - MSP Recovery, LLC Announces
Launch of LifeWallet
- LifeWallet empowers people to take control of their health by
giving first responders and healthcare providers easy access to
medical and prescription information.
- Jan 25, 2022 - MSP Recovery’s Portfolio of
Assigned Claims Grows by Over 440%, From $61 Billion to an
Estimated $330 Billion in Paid Amount
- Jan 31, 2022 - MSP Recovery’s LifeWallet
Announces Data of More than 1 Million Patients Uploaded to Platform
Less Than a Month Since Launch
- LifeWallet Powered by MSP Recovery now available in Apple’s
AppStore.
- LifeWallet continues to expand its roster of collegiate
athletes with NIL contracts.
- April 18, 2022 - MSP Recovery Announces
Significant Progress Towards Settlements and Strategic Alliance
With Law Firms Milberg Coleman Bryson Phillips Grossman, PLLC and
Rivero Mestre, LLP.
- MSP Recovery’s alliance with the two law firms represents more
than 65 new lawyers who may assist in MSP Recovery’s recovery
efforts.
- Each firm is committing significant resources to litigating
more reimbursement recovery cases for MSP Recovery.
- May 3, 2022 - MSP Recovery and Lionheart
Acquisition Corporation II Announce Effectiveness of Registration
Statement
- May 10, 2022 - Lionheart Acquisition
Corporation II Declares Special Dividend in the Form of New
Warrants
- Lionheart Acquisition Corporation II announced that its Board
of Directors has declared a dividend in the form of approximately
1,029,000,000 warrants (the “New Warrants”), each to purchase one
share of the Company's Class A Common Stock at $11.50 per share.
The issuance of the New Warrant dividend is conditioned upon the
closing (the “Closing”) of the previously announced proposed
business combination with MSP Recovery, LLC (the “Business
Combination”), pursuant to the Membership Interest Purchase
Agreement (as amended, the “MIPA”) by and among the Company,
Lionheart II Holdings, LLC, the MSP Purchased Companies (as defined
in the MIPA) (collectively, “MSP”), the members of MSP (the
“Members”), and John H. Ruiz, in his capacity as the representative
of the Members
- May 13, 2022 - Lionheart Acquisition
Corporation II Enters into Non-Binding Term Sheets for Forward
Purchase Agreement and Committed Equity Facility with Cantor
Fitzgerald L.P.
- Cantor may purchase up to 3.5 million shares of Lionheart
Acquisition Corporation II stock before closing of the business
combination with MSP Recovery, LLC
- Equity facility covers the purchase of up to $1 billion in
shares of the combined company after closing of the business
combination
- May 17, 2022 - MSP Recovery Sees Substantial
Business Expansion Since Announcement of Its Business Combination
Through Development of Additional Revenue Streams, Monetization of
Assignor Interests, Growth of Existing Business, and Continued
Innovation
- MSP Recovery, LLC (“MSP Recovery” or “MSPR”), a Medicare,
Medicaid, commercial, and secondary payer reimbursement recovery
leader, and Lionheart Acquisition Corporation II, a Delaware
corporation (Nasdaq: LCAPU, LCAP, LCAPW, “Lionheart” or “LCAP”),
today announced substantial business expansion through development
of additional revenue stream, monetization of assignor interests,
growth of assignors and existing business, and continued
innovation.
- May 18, 2022 - Lionheart Acquisition
Corporation II Shareholders Approve Previously Announced Business
Combination with MSP Recovery
- Lionheart Acquisition Corporation II (Nasdaq: LCAPU, LCAP,
LCAPW, “Lionheart” or “LCAP”), a publicly traded special purpose
acquisition company, today announced that shareholders of record as
of April 18, 2022 approved the previously announced business
combination (the “Business Combination”) with MSP Recovery, LLC
(“MSP Recovery” or “MSP”) a Medicare, Medicaid, commercial, and
secondary payer reimbursement recovery leader.
- May 20, 2022 - Lionheart Acquisition
Corporation II Announces Clarification Regarding New Warrants and
Updated Target Closing Date
- Lionheart Acquisition Corporation II (Nasdaq: LCAPU, LCAP and
LCAPW) (“Company”) announces a clarification on the issuance of New
Warrants, as previously announced in connection with its business
combination with MSP Recovery, LLC (the “Business
Combination”).
- May 23, 2022 - MSP Recovery Enters Into
Agreement With Mexico’s SeguriTech, a Technology Integration
Pioneer, to Enhance MSPR’s Data Capabilities, Position MSPR for
International Growth, and Expand the LifeWallet Platform Across
Mexico
- The Agreement with SeguriTech announced today positions MSPR to
expand its LifeWallet platform – launched on January 10, 2022 – to
the global healthcare marketplace where LifeWallet is actively
pursuing expansion opportunities in countries that utilize the
ICD-10 coding system, which is being implemented by World Health
Organization (WHO) member states. Approximately 27 countries
currently use ICD-10 for reimbursement and resource allocation in
their health system, and the unchanged international version of
ICD-10 is used in 117 countries for performing cause of death
reporting and statistics.
- May 23, 2022 - MSP Recovery, Inc. Announces
Completion of Business Combination Between Lionheart Acquisition
Corporation II and MSP Recovery, LLC.
- MSP Recovery, Inc. (“MSPR”), formerly known as Lionheart
Acquisition Corporation II, a Delaware corporation (Nasdaq: LCAPU,
LCAP, LCAPW, “Lionheart” or “LCAP”), today announced that it has
closed the previously announced business combination (the
“transaction”) with MSP Recovery, LLC. (“MSP”), a Medicare,
Medicaid, commercial, and secondary payer reimbursement recovery
leader. The business combination was approved by a majority of
LCAP’s stockholders in an extraordinary meeting on May 18,
2022.
- As previously announced, following the closing, LCAP’s Class A
Common Stock will cease trading on the Nasdaq Capital Market
(“Nasdaq CM”) under the symbol “LCAP” (CUSIP 53625R104), and will
begin trading tomorrow -- May 24, 2022 -- on Nasdaq Global Market
(“Nasdaq GM”) under the symbol “MSPR” (CUSIP 553745100) and LCAP’s
warrants, each to purchase one share of Class A Common Stock of
MSPR at $11.50 per share, will cease trading on the Nasdaq CM under
the symbol “LCAPW” and begin trading on Nasdaq GM under the symbol
“MSPRZ”.
- May 23, 2022 - MSP Recovery, Inc. Begins
Trading on Nasdaq Under the Symbol “MSPR” on May 24, 2022
- MSP Recovery, Inc. (“MSPR”), a Medicare, Medicaid, commercial,
and secondary payer reimbursement recovery leader and technology
innovator, announced that its Class A Common Stock and warrants
will begin trading on May 24, 2022 on Nasdaq under the symbol
“MSPR” following today’s completion of a business
combination with Lionheart Acquisition Corporation II
(“LCAP”).
About MSP RecoveryFounded 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 against responsible parties. MSP
Recovery provides the healthcare industry with comprehensive
compliance solutions, while innovating technologies to help save
lives. For more information, visit: www.msprecovery.com
About Lionheart Acquisition Corporation II
Lionheart Acquisition Corporation II was a blank check company
formed for the purpose of effecting a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or
similar business combination with one or more businesses. For more
information, visit: www.LCAP2.com.
For Media:ICR, Inc.MSP@icrinc.com
For Investors:ICR, Inc.Marc GriffinMarc.Griffin@icrinc.com
MSP Recovery (NASDAQ:MSPR)
Historical Stock Chart
From Feb 2024 to Mar 2024
MSP Recovery (NASDAQ:MSPR)
Historical Stock Chart
From Mar 2023 to Mar 2024