The U.S. Securities and Exchange Commission announced on December 7, 2025 that it had completed its investigation of MSP Recovery, Inc. (MSPR) and would not recommend any enforcement action against the company, its CEO John H. Ruiz, or its officers. The decision follows a three‑year review that began on August 11, 2022 and examined the company’s business combination with Lionheart Acquisition Corporation II, its financial projections, investor agreements, and data‑analytics platforms.
The investigation also focused on the accounting and valuation of certain assets that led MSPR to restate its quarterly financial statements for the periods ending June 30 and September 30, 2022. MSPR cooperated fully with SEC staff throughout the inquiry, providing documentation and participating in interviews. After reviewing the evidence, the SEC staff found no material violations or misconduct that would warrant regulatory penalties or civil action.
While the SEC’s conclusion removes a significant regulatory overhang, it does not erase the company’s underlying financial challenges. MSPR continues to face substantial debt, rapid cash burn, and a “going‑concern” warning in its most recent filings. The company has undertaken restructuring efforts and secured new funding agreements to shore up liquidity, but investors remain cautious about its long‑term sustainability.
Management emphasized that the SEC’s findings are a relief and a testament to the company’s compliance culture. CEO Ruiz said, “From day one, MSP Recovery cooperated fully with regulators and let the facts speak for themselves. We are pleased that after reviewing extensive information over more than three years, the SEC staff has concluded its investigation without recommending enforcement action against the Company or its officers.” The company also highlighted its ongoing Nasdaq compliance work, including reverse stock splits to maintain minimum bid‑price requirements.
MSPR operates as a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery firm, using data‑driven solutions to identify and recover improperly paid healthcare claims. The SEC’s decision allows the company to refocus resources on expanding its technology platform and pursuing new client relationships, but it must still navigate the financial headwinds that have characterized its recent history.
The SEC’s conclusion is a positive development for MSPR’s regulatory standing, but the company’s financial trajectory remains uncertain. Investors will likely monitor the company’s cash‑flow performance, debt‑repayment plans, and the effectiveness of its restructuring initiatives as it seeks to stabilize its balance sheet while continuing to grow its core reimbursement recovery business.
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