InnovAge Holding Corp. (INNV) Securities Class Action:
The action alleges that InnovAge and other insiders made false and misleading statements in the registration statement for the company’s March 2021 IPO, which allowed InnovAge to raise over $373.6 million in proceeds.
Specifically, the registration statement omitted, among other facts, that: (1) certain of InnovAge’s facilities failed to provide covered services, provide accessible and adequate services, manage participants’ medical situations, and oversee use of specialists; (2) as a result, the company was reasonably likely to be subject to regulatory scrutiny, including by the Centers for Medicare and Medicaid Services (CMS); and (3) consequently, there was a significant risk that CMS would suspend new enrollments pending an audit of the company’s services.
The registration statement’s accuracy was brought into question on Sep. 21, 2021, when the company revealed that CMS determined to freeze new enrollments at its Sacramento facility based on observed deficiencies.
On this news, the company’s stock price fell $2.90 per share, or 25%, in a single trading day. As of the filing of the complaint, InnovAge trades nearly 70% below the $20 IPO price.
“We’re focused on investors’ losses and proving the IPO registration statement negligently failed to disclose the problems at InnovAge’s facilities,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in InnovAge and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding InnovAge should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email INNV@hbsslaw.com.
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Reed Kathrein, 844-916-0895