NEW YORK, October 19, 2021--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of those who acquired InnovAge Holding Corp. ("InnovAge" or the "Company") (NASDAQ: INNV) securities from March 2, 2021 through October 14, 2021, inclusive (the "Class Period"). Investors have until December 13, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
InnovAge operates a healthcare delivery platform that purportedly takes a "patient-centered care approach" to improve the quality of care that participants receive.
In March 2021, InnovAge completed its Initial Public Offering, selling approximately 18,995,901 shares of common stock at a price of $21.00 per share.
On September 21, 2021, after the market closed, certain InnovAge executive officers participated in an earnings conference call. During the conference call, Maureen Hewitt, InnovAge’s president and Chief Executive Officer, revealed that the Centers for Medicare and Medicaid Services ("CMS") had "determined to freeze new enrollments at [the Company’s] Sacramento center based on deficiencies detected in [a May 2021] audit." Ms. Hewitt stated that these "deficiencies relate to failures to provide covered services, provide accessible and adequate services, manage participants’ medical situations and oversee use of specialists among others." On this news, the Company’s share price declined by $2.90 per share, or approximately 24.9%, from $11.65 per share to close at $8.75 per share on September 22, 2021.
The lawsuit alleges throughout the Class Period, Defendants failed to disclose to investors: (1) that 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) that, as a result, the Company was reasonably likely to be subject to regulatory scrutiny, including by the CMS; (3) that, as a result, there is a significant risk that CMS would suspend new enrollments pending an audit of the Company’s services; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired InnovAge securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211019006229/en/