John Ruiz's MSP Recovery Weighs Restructuring After Months of Financial Crisis and Nasdaq Exit

August 1, 2026

MSP Recovery, the healthcare reimbursement recovery firm founded by Cuban-American businessman and attorney John H. Ruiz, is evaluating financing options and a possible restructuring — which could include preparations for Chapter 11 bankruptcy protection — after missing its May 2026 deadline to file its quarterly report with the U.S. Securities and Exchange Commission (SEC).

In a filing dated May 18, 2026 and signed by Ruiz himself, the company attributed the delay to "severe liquidity constraints," its reliance on outside financing to sustain day-to-day operations, and the February 2026 resignation of its Chief Financial Officer, Francisco Rivas-Vásquez, which created "additional bottlenecks" in the quarter's financial close. The company said the timing of the completed filing "will depend in part on securing sufficient financing" to finish the outstanding quarter-end closing work.

The delay came just weeks after MSP Recovery filed a similar notice in March 2026 for its 2025 annual report, in which it acknowledged lacking sufficient funds to pay for outstanding audit work with its auditor, Baker Tilly US. At that point, the company's market capitalization had fallen to just over $400,000 — a fraction of the roughly $32.6 billion valuation it briefly reached after going public in 2022.

The crisis had been building since late 2025: on December 22 of that year, Nasdaq removed the company from its main market for failing to meet minimum stockholder equity and share price requirements, and its stock began trading on the OTCQB over-the-counter market. Days earlier, the SEC had concluded a three-year investigation into the company — opened in 2022 and focused on its financial projections and the algorithms it uses to identify wrongfully paid insurance claims — without recommending enforcement action against the company, Ruiz, or its officers.

Ruiz, the son of Cuban immigrants based in South Florida, founded MSP Recovery in 2014 to recover payments that should have been covered by private insurers under the federal Medicare Secondary Payer Act. The company still has major litigation underway, including a class action against insurer GEICO cleared to proceed by a July 2025 Maryland Supreme Court ruling.