A lawsuit was filed on behalf of investors in Inovalon Holdings Inc (NASDAQ:INOV) shares over alleged securities laws violations and NASDAQ:INOV investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/06/2016 -- An investor, who purchased NASDAQ:INOV shares , filed a lawsuit in New York over alleged violations of Federal Securities Laws by Bowie, MD based Inovalon Holdings Inc in connection with Inovalon Holdings' February 12, 2015 initial public offering ("IPO").
Investors who purchased shares of Inovalon Holdings Inc (NASDAQ:INOV) have certain options and for certain investors are short and strict deadlines running. Deadline: August 23, 2016. NASDAQ:INOV investors should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges that the defendants violated Federal Securities Laws. The lawsuit was filed on behalf of purchasers of Inovalon Holdings Inc (NASDAQ:INOV) Class A common stock pursuant or traceable to the Registration Statement and Prospectus.
Inovalon Holdings, Inc. is a technology company that combines advanced cloud-based data analytics and data-driven intervention platforms to provide services for health plans, hospitals, physicians, patients, pharmaceutical companies and researchers. Inovalon Holdings Inc went public in early February 2015 and shares reached as high as $31.75 per share in late February 2015.
The plaintiff claims that the Registration Statement issued in connection with the IPO contained allegedly untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements made not misleading. More specifically, the plaintiff alleges that the defendants failed to disclose that I Inovalon Holdings Inc derives substantial revenues from sales in the City of New York and the State of New York, both of which were reforming their corporate tax schemes in order to capture more taxes from out-of-state businesses like Inovalon Holdings Inc doing substantial business within their borders. The plaintiff says that those corporate tax rate increases, which would take effect January 1, 2015, more than a month prior to Inovalon's IPO, significantly increased the Company's effective tax rate and thus lowered its 2015 earning potential and that these material facts should have been disclose in the Registration Statement, but were not, and the omission rendered false and misleading the Registration Statement's express claim that Inovalon's year-over-year "effective income tax rate . . . remained relatively stable at 39%."
On July 5, 2016, NASDAQ:INOV shares closed at $18.08 per share.
Those who purchased shares of Inovalon Holdings Inc have certain options and should contact the Shareholders Foundation.
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