According to the Complaint, InnovAge Holding Inc. operates a healthcare delivery platform that purportedly takes a “patient-centered care approach” to improve the quality of care that participants receive.

In March 2021, InnovAge completed its IPO, selling approximately 18,995,901 shares of common stock at a price of $21.00 per share.

On September 21, 2021, after the market closed, InnovAge revealed that the Centers for Medicare and Medicaid Services (“CMS”) had “determined to freeze new enrollments at [the Company’s] Sacramento center based on deficiencies detected in [a recent] audit.” It stated that these “deficiencies relate to failures to provide covered services, provide accessible and adequate services, manage participants’ medical situations, and oversee use of specialists, among others.”

The Complaint alleges that Defendants failed to disclose to investors: (1) that certain of InnovAge’s facilities failed to provide covered services, provide accessible and adequate services, manage participants’ medical situations, and oversee use of specialists; (2) that, as a result, the Company was reasonably likely to be subject to regulatory scrutiny, including by the Centers for Medicare and Medicaid Services; (3) that, as a result, there as a significant risk that CMS would suspend new enrollments pending an audit of the Company’s services; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On April 11, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on June 21. Defendants filed a Motion to Dismiss the amended Complaint on September 13. On December 21, 2023, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. The claims dismissed by the order were dismissed without prejudice.

Lead Plaintiff filed a second amended Complaint on September 17, 2024.

On January 8, 2025, the Court issued an Order approving Lead Plaintiffs' Motion for Class Certification. The Court issued an amended Class Certification Order on January 9.

On June 2, 2025, the parties entered into a Stipulation and Agreement of Settlement. The Settlement was preliminarily approved by the Court on June 17th.