MSP Recovery Reaffirms Sales Guidance

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, &ldquo, Lionheart&rdquo, or &ldquo, LCAP&rdquo, ))), 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, &ldquo, Lionheart&rdquo, or &ldquo, LCAP&rdquo, ))), 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, &ldquo, Lionheart&rdquo, or &ldquo, LCAP&rdquo, ))), 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”).