NEW YORK, October 20, 2021--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against InnovAge Holding Corp. ("InnovAge" or the "Company") (NASDAQ: INNV) on behalf of InnovAge stockholders. Our investigation concerns whether InnovAge has violated the federal securities laws and/or engaged in other unlawful business practices.
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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.
If you purchased or otherwise acquired InnovAge shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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