Court Approves $27 Million Cash Settlement in InnovAge Securities Fraud Class Action

Cohen Milstein Sellers & Toll PLLC represented the certified investor class led by the El Paso Firemen & Policemen’s Pension Fund, the San Antonio Fire & Police Pension Fund, and the Indiana Public Retirement System. A federal judge in Colorado granted final approval on December 11, 2025 to a $27 million cash settlement resolving a certified securities fraud class action against InnovAge Holding Corp., a national senior-living healthcare company, its former CEO and CFO, members of its board of directors, a group of underwriters, and two private equity backers. The approval ended El Paso Firemen & Policemen’s Pension Fund, et al. v. InnovAge Holding Corp., Case No. 1:21-cv-02770, in the U.S. District Court for the District of Colorado. The complaint, originally filed in 2021, alleged that InnovAge’s IPO registration statement and subsequent public statements were materially false and misleading. Plaintiffs contended that, after federal lobbying enabled for-profit participation in the Program of All-Inclusive Care for the Elderly (PACE) and InnovAge became the first for-profit PACE provider, the company’s reported enrollment growth masked critical problems. The suit alleged that InnovAge concealed inadequate staffing levels and an inability to provide adequate care, and that the truth emerged only following state and federal regulatory sanctions. The announcements of those sanctions precipitated a 78% decline in InnovAge’s stock price, making it among the worst-performing IPOs of 2021. The Honorable William J. Martinez praised counsel and the results achieved in his final approval order, noting the skill and effectiveness of plaintiffs’ counsel in resolving a complex case. Cohen Milstein Sellers & Toll PLLC represented the certified investor class led by the El Paso Firemen & Policemen’s Pension Fund, the San Antonio Fire & Police Pension Fund, and the Indiana Public Retirement System, with a team composed by: lead plaintiffs’ counsel and supporting attorneys from the firm’s securities litigation and class action practice groups. Cohen Milstein was appointed sole Lead Counsel for the class in 2022 and the firm, a plaintiffs’ litigation practice with over 100 attorneys across eight offices, led the plaintiffs’ representation in securing the settlement.

Court Approves $27 Million Cash Settlement in InnovAge Securities Fraud Class Action

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