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SAN DIEGO, Oct. 16, 2021 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of InnovAge Holding Corp. ("InnovAge" or the "Company") (NASDAQ: INNV). The class action is on behalf of shareholders who purchased InnovAge common stock shares pursuant and traceable to the Company's initial public offering conducted in March 2021 (the "IPO"). If you wish to serve as lead plaintiff in this class action, you must move the Court no later than December 13, 2021.
In March 2021, InnovAge sold about 16.7 million shares of stock in its initial public stock offering (the "IPO") at $21 a share, raising nearly $351 million in new capital.
Then on September 21, 2021, during a conference call, Maureen Hewitt, InnovAge’s President and CEO, disclosed that the Centers for Medicare and Medicaid Services had "determined to freeze new enrollments at [InnovAge’s] Sacramento center based on deficiencies detected in [a May 2021] audit." Hewitt added that the "deficiencies relate to failures to provide covered services, provide accessible and adequate services, manage participants’ medical situations, and oversee use of specialists, among others."
According to the complaint, InnovAge's IPO Registration Statement contained false and The complaint filed in this class action alleges that 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 the use of specialists; (2) that, as a result, the Company was reasonably likely to be subject to regulatory scrutiny, including by the Centers for Medicare and Medicaid Services; (3) that, as a result, there as 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 lacked a reasonable basis.
A lead plaintiff will act on behalf of all other class members in directing the InnovAge class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor's ability to share any potential future recovery of the InnovAge class action lawsuit is not dependent upon serving as lead plaintiff.
If you suffered a substantial loss and are interested in learning more about being a lead plaintiff, please contact Jim Baker (firstname.lastname@example.org) by email or phone at 619-814-4471. If emailing, please include a phone number.
Additionally, you can [click here to join this action]. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.