InnovAge Investors Keep PE Firm in Suit Over Elder Care IPO

InnovAge Holding Corp. investors can sue the entities behind private equity firm Welsh, Carson, Anderson & Stowe in a sprawling case against the geriatric health care company, its underwriters, and others, a federal court ruled.

Although “Welsh, Carson, Anderson & Stowe” is simply a trade name, the investors adequately alleged that WCAS Management Corp. controls the business and its funds and can potentially be held liable as a “control person” of InnovAge, Judge William J. Martinez said for the US District Court for the District of Colorado. The investors will also have a chance to prove that two other WCAS ...