Philadelphia, Pennsylvania--(Newsfile Corp. - January 10, 2025) - If you have held InnovAge Holding Corp. (NASDAQ: INNV) shares since on or before May 11, 2021 and would like to learn more about the investigation, your rights, and potential for recovery, please visit https://grabarlaw.com/the-latest/innovage-shareholder-investigation/contact Joshua Grabar at jgrabar@grabarlaw.com or call us at 267-507-6085.
WHY: Claims alleged in a securities fraud class action complaint against InnovAge have survived a motion to dismiss and the case has been certified as a class action.
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 alleged in the underlying securities fraud complaint as pled are actionable and has also certified the case as a class action.
WHAT YOU CAN DO: If you have continuously held InnovAge shares since on or before May 11, 2021, 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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