Shares of MSP Recovery
which does business as LifeWallet, sank late Tuesday after the company said it would enact a 1-for-25 reverse stock split.
The stock fell 20%, to 20 cents, after-hours, after rising 25% at Tuesday’s close. Shares are down 84% this year.
The Coral Gables, Fla.-based insurance claim-recovery company said its shares would begin trading on a split-adjusted basis when trading opens Oct. 13. The company said the reverse split was meant to bring the company into compliance with the Nasdaq’s $1 minimum bid price per share requirement.