An investor in NASDAQ:INOV shares filed a lawsuit in the U.S. District Court for the Southern District of New Yorkover alleged violations of l Securities Laws by 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 mail@shareholdersfoundation.com or call +1(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.
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%.”
In late March 2015 Inovalon Holdings Inc reported its fourth quarter and full year 2014 results. Inovalon Holdings Inc reported that its annual Total Revenue rose from $295.80 million in 2013 to $361.54 million in 2014 and that its Net Income increased from $32.72 million in 2013 to $65.35 million in 2014.
Since then shares of Inovalon Holdings Inc (NASDAQ:INOV) declined to as low as $15.12 per share on January 21, 2016.
Those who purchased NASDAQ:INOV shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com