January 9, 2025
A Colorado federal judge on Wednesday certified a nationwide class of stockholders in a securities suit alleging a senior health care company made misleading statements in an initial public offering that later caused stock prices to tank after a government audit exposed the falsehoods.
Three public pension funds based in Texas and Indiana have accused InnovAge Holding Corp. and parties behind its March 2021 IPO of falsely claiming its business providing seniors with comprehensive health care grew because of an innovative business model, when a government audit and media reporting later showed that growth came at the expense of senior citizens.
A September 2024 amended complaint — brought against InnovAge, its board, private equity firms that funded the IPO and the deal’s underwriters — argued InnovAge’s stock price for the IPO was set based on those misleading statements, only for prices to later plummet after the federal government suspended enrollment at one of the company’s centers.
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The plaintiffs are represented by Julie G. Reiser, Molly J. Brown, Jan E. Messerschmidt, Brendan R. Schneiderman, Carol V. Gilden and Manuel J. Dominguez of Cohen Milstein Sellers & Toll PLLC and Cecil E. Morris and Adrian P. Castro of Fairfield & Woods PC.
Read Colo. Judge Certifies National Class Of Senior Care Investors.