June 3, 2025
InnovAge Holding Corp. and a class of stockholders have agreed to a $27 million settlement to resolve claims that the 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.
Lead plaintiffs — the El Paso Firemen & Policemen’s Pension Fund, San Antonio Fire & Police Pension Fund and Indiana Public Retirement System — filed a motion for preliminary approval on Monday, stating they reached a deal after arm’s length negotiations and three years of litigation.
According to shareholders, the settlement will provide class members with a “substantial percentage of the maximum realistically recoverable damages that could be established at trial,” and it is a meaningful and immediate recovery when considered against the risks of continued litigation.
“There were many risks to continued litigation, including hurdles to proving falsity, scienter and loss causation,” the motion states.
The motion also says class counsel from Cohen Milstein Sellers & Toll PLLC will seek an award of attorney fees of no more than 20% of the settlement fund, or roughly $5.4 million, as well as $800,000 in litigation costs and service awards for the lead plaintiffs.
The deal comes after a Colorado federal judge granted class certification in January to any person or entity who purchased or acquired InnovAge stock between May 11, 2021, and Dec. 22, 2021, or who acquired stock “in or traceable to” the company’s initial public offering.
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The shareholders are represented by Julie G. Reiser, Molly Bowen, 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.