SAN DIEGO, Oct. 16, 2021 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP announces that purchasers of InnovAge Holding Corp. (NASDAQ: INNV) 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") have until December 13, 2021 to seek appointment as lead plaintiff in the InnovAge class action lawsuit. The InnovAge class action lawsuit – captioned McLeod v. InnovAge Holding Corp., No. 21-cv-02770 – charges InnovAge, certain of its officers, and the underwriters of InnovAge's IPO with violations of the Securities Act of 1933. The InnovAge class action lawsuit was commenced on October 14, 2021 in the District of Colorado.
If you wish to serve as lead plaintiff of the InnovAge class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. Lead plaintiff motions for the InnovAge class action lawsuit must be filed with the court no later than December 13, 2021.
CASE ALLEGATIONS: InnovAge operates a healthcare delivery platform that purportedly takes a patient-centered care approach to improve the quality of care that participants receive. In its IPO, InnovAge sold approximately 18,995,901 shares of common stock at a price of $21.00 per share. The proceeds from the IPO were purportedly to be used to repay certain debt and for general corporate purposes, including working capital, operating expenses, and capital expenditures.
The InnovAge class action lawsuit alleges that InnovAge's Registration Statement was materially false and misleading and omitted that: (i) certain of InnovAge'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, InnovAge 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 InnovAge's services; and (iv) given the foregoing, defendants' positive statements about InnovAge's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On September 21, 2021, InnovAge 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, InnovAge's stock price fell approximately 25%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased InnovAge common stock pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the InnovAge class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts 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 InnovAge class action lawsuit. An investor's ability to share in any potential future recovery of the InnovAge class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs' firm. Please visit https://www.rgrdlaw.com/firm.html for more information.
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Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
SOURCE Robbins Geller Rudman & Dowd LLP