DENVER, Dec. 11, 2025 (GLOBE NEWSWIRE) -- A federal judge in Colorado granted final approval of a $27 million cash settlement between investors and InnovAge Holding Corp., a national senior-living healthcare company, its former CEO and CFO, board of directors, underwriters, and two private equity backers, resolving this high-profile certified securities fraud class action.
The Honorable William J. Martinez of the United States District Court for the District of Colorado commended counsel and the results achieved. In the order, he wrote, “the Court has been particularly impressed by the lawyers litigating this case, and most notably the exceptional results achieved by Plaintiffs’ counsel in this litigation. The briefs and arguments . . . were particularly well-written and were very helpful to the Court in resolving this complex case.” Pg. 7
Originally filed in 2021, El Paso Firemen & Policemen’s Pension Fund, et al. v. InnovAge Holding Corp. alleged that InnovAge made false and misleading statements to investors in its IPO materials and throughout the class period.
Following a federal lobbying effort to allow for-profit entities to participate in the Program of All-Inclusive Care for the Elderly (“PACE”), InnovAge became the first for-profit PACE provider. With the backing of private entity firms, InnovAge went public. Plaintiffs alleged that while InnovAge’s enrollment numbers soared, patients suffered and the Company concealed critical information from investors, including inadequate staffing levels and inability to provide adequate care to patients. Ultimately, the truth was revealed through state and federal regulatory sanctions on InnovAge, which when announced led to a 78% stock drop, making InnovAge one of the five worst-performing IPOs of 2021.
Defendants included InnovAge, former CEO Maureen Hewitt, former CFO Barbara Gutierrez, John Ellis Bush, Andrew Cavanna, Caroline Dechert, Edward Kennedy, Jr., Pavithra Mahesh, Thomas Scully, Marilyn Tavenner, Sean Traynor, Richard Zoretic, WCAS Management Corporation, WCAS Management, L.P., WCAS Management, LLC, Apax Partners US LLC, TCO Group Holdings, L.P., J.P. Morgan Securities LLC, Barclays Capital Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Robert W. Baird & Co. Incorporated, William Blair & Company, L.L.C., Piper Sandler & Co., Capital One Securities, Inc., Loop Capital Markets LLC, Siebert Williams Shank & Co., LLC, and Roberts & Ryan Investments, Inc.
The certified class of investors was led by the El Paso Firemen & Policemen’s Pension Fund, the San Antonio Fire & Police Pension Fund, and the Indiana Public Retirement System. Cohen Milstein was appointed sole Lead Counsel in 2022.
The case name is: El Paso Firemen & Policemen’s Pension Fund, et al. v. InnovAge Holding Corp., Case No. 1:21-cv-02770, U.S. District Court for the District of Colorado.
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