An investigation on behalf of current long term investors in Inovalon Holdings Inc (NASDAQ:INOV) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:INOV stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/21/2018 -- Certain directors of Inovalon Holdings Inc are under investigation over possible breaches of fiduciary duties.
Investors who are current long term investors in Inovalon Holdings Inc (NASDAQ:INOV) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NASDAQ:INOV stocks follows a lawsuit filed against Inovalon Holdings Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:INOV stocks, concerns whether certain Inovalon Holdings directors are liable in connection with the allegations made in that lawsuit.
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. 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%."
Those who purchased shares of Inovalon Holdings Inc (NASDAQ:INOV) have certain options and should contact the Shareholders Foundation.
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