Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against InnovAge Holding Corp. (INNV)

10/15, 11:23 PM (Source: GlobeNewswire)

NEW YORK, Oct. 15, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against InnovAge Holding Corp. (“InnovAge” or the “Company”) (NASDAQ: INNV) in the United States District Court for the District of Colorado on behalf of those who purchased InnovAge common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with InnovAge’s March 2021 initial public offering (“IPO”)

The Complaint alleges that the Company’s Registration Statement was materially false and misleading and omitted that: (i) certain of the Company’s facilities failed to provide covered services, provide accessible and adequate services, manage participants’ medical situations, and oversee use of specialists; (ii) as a result, the Company was reasonably likely to be subject to regulatory scrutiny, including by the Centers for Medicare and Medicaid Services (“CMS”); (iii) thus, there was a significant risk that CMS would suspend new enrollments pending an audit of the Company’s services; and (iv) given the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On September 21, 2021, the Company revealed that the CMS had “determined to suspend new enrollments at [the Company’s] Sacramento center based on deficiencies detected in [a recent] audit.” The Company stated that these deficiencies “related to participant quality of care.” On this news, the Company’s stock price fell approximately 25%, damaging investors.

Investors who purchased or otherwise acquired shares of the Company should contact the Firm prior to the December 13, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.


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