InnovAge Holding Corp. Securities Fraud Investigation
Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities of InnovAge Holding Corp. (“InnovAge” or the “Company”) (NASDAQ: INNV) between March 2, 2021 and October 14, 2021 (the “Class Period”), including purchasers of shares on or traceable to the Company’s March 2021 IPO.
If you purchased InnovAge securities during the Class Period, would like to discuss Berger Montague’s investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at [email protected] or (215) 875-3015, or Michael Dell’Angelo at [email protected] or (215) 875-3080.
Whistleblowers: Anyone with non-public information regarding InnovAge is encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to a recently filed complaint, 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 suit alleges that the registration statement omitted, among other facts, that: (1) certain of InnovAge’s facilities failed to provide covered services, and failed to manage participants’ medical situations; and (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).
The registration statement’s accuracy was called into question on September 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 traded nearly 70% below the $20 IPO price.