Philadelphia, Pennsylvania--(Newsfile Corp. - January 22, 2024) - Claims alleged in a securities fraud class action complaint against InnovAge (NASDAQ: INNV) have survived a motion to dismiss. As alleged, on March 4, 2021, InnovAge went public as certain of its officers and directors boasted that the healthcare provider's meteoric growth over the previous four years resulted from a business model that provided comprehensive care for the most frail seniors in the United States. InnovAge claimed it had created a "virtuous cycle" of continued, flywheel-like growth in a virtually untapped $200 billion healthcare market. But in just eight months, government audits and investigative reporting revealed that InnovAge's growth resulted not because of its services for seniors, but at the expense of them.
Rather than disclose that the Company's model for providing care was failing, InnovAge and Defendants told investors that they were not only "consistently deliver[ing] high-quality care," but also that the model could easily and successfully be scaled for continued growth. At the same time, Defendants Hewitt and Gutierrez cashed out approximately $42 million of stock options and other compensation. A federal court has now found that a number of the claims in the complaint as pled are actionable.
If you have continuously held InnovAge shares since on or around its March 4, 2021 IPO, you may seek corporate reforms, the return of funds back to company coffers, and a court approved incentive award at no cost to you.
If you would like to learn more about this matter at no cost to you, visit https://grabarlaw.com/the-latest/innovage-shareholder-investigation/ or contact Joshua H. Grabar at jgrabar@grabarlaw.com or Mia R. Heller at mheller@grabarlaw.com, or call 267-507-6085.
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Joshua H. Grabar, Esq.
Grabar Law Office
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1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: jgrabar@grabarlaw.com
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