InnovAge (INNV) Investigation

DENVER—March 3, 2023—Denver-based Berens Law LLC (www.jberenslaw.com/) today announced that it is investigating potential claims on behalf of InnovAge Holding Corp. (NASDAQ: INNV) against certain of its officers and directors following the initiation of a class action, El Paso Firemen & Policemen’s Pension Fund et al. v. InnovAge Holding Corp. et al., filed against the company in the United States District Court for the District of Colorado.

What is Berens Law investigating? Berens Law’s investigation concerns whether InnovAge’s officers and/or directors have breached their fiduciary duties to the company such that they should be held responsible for any damages experienced by InnovAge due to the false or materially misleading public statements alleged in the pending securities class action. 

What actions may I take at this time?  If you are a current, long-term InnovAge shareholder you may have standing to hold the company harmless from the alleged harm caused by the company’s officers and directors by making them personally responsible.  You may also be able to assist in reforming the company’s corporate governance to prevent future wrongdoing.

For a free consultation regarding your legal options, please contact Jeffrey A. Berens, Esq., at 303-861-1764 (call or text), via email at jeff@jberenslaw.com, or visit our website at www.jberenslaw.com for additional information.

What are the allegations in the pending complaint?   InnovAge is a Denver-headquartered, national healthcare company focused on providing Program of All-Inclusive Care for the Elderly (PACE) services for frail seniors. 

In its March 4, 2021 initial public offering (IPO), InnovAge sold approximately 18,995,901 shares of common stock at a price of $21 per share. The class action plaintiffs allege that InnovAge and others made materially false and misleading statements in connection with the IPO and thereafter, including failing to disclose that the Company’s business model was driven by a relentless pursuit of growth at the expense of elder health and regulatory compliance.  Moreover, the company’s expansion allegedly over-whelmed its clinical staff, and its byzantine electronic medical records systems and inadequate training crippled its ability to provide coordinated, 24-hour care.

On September 17, 2021, CMS notified InnovAge that the agency was suspending enrollment at the company’s Sacramento, California center after its audit of the facility found that InnovAge “substantially failed” to “provide to its participants medically necessary items and services that are covered PACE services.” Three months later, on December 23, 2021, InnovAge announced that CMS and Colorado had decided to suspend enrollment at the Company’s Colorado centers, responsible for more than 50% of the Company’s revenue, based on deficiencies identified in their audits which had focused on patient care provided mostly or partially prior to the IPO.

On this news, the price of InnovAge’s stock plummeted to $5.31 per share, representing a 78% decline from its all-time high in March 2021. 

About Berens Law LLC.  Berens Law LLC, located in Denver, Colorado, represents investors in securities class action and shareholder derivative lawsuits, and over the years has recovered hundreds of millions of dollars for clients. For more information, please go to: www.jberenslaw.com.

Contact:

Jeffrey A. Berens, Esq.

Berens Law LLC 

2373 Central Park Boulevard

Suite 100

Denver, CO 80238 

Tel: (303) 861-1764

Email: jeff@jberenslaw.com