NEW YORK, June 24, 2016 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/inovalon/) today announced that a
class action has been commenced on behalf of purchasers of Inovalon
Holdings, Inc. ("Inovalon") (NASDAQ:INOV) Class A common stock
pursuant or traceable to the Registration Statement and Prospectus
(collectively, the "Registration Statement") issued in connection
with Inovalon's February 12, 2015
initial public offering ("IPO"). This action was filed in the
United States District Court, Southern District of New York and is captioned Xiang v. Inovalon
Holdings, Inc., et al., No. 1:16-cv-04923.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Samuel H. Rudman
or Andrew L. Schwartz of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as filed
or join this class action online at
http://www.rgrdlaw.com/cases/inovalon/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges Inovalon, certain of its officers and
directors, and the underwriters of its February 2015 IPO with violations of the
Securities Act of 1933. Inovalon provides cloud-based data
analytics platforms for health insurance plans, pharmaceutical
companies, researchers and others in the healthcare industry.
On or about February 12, 2015,
Inovalon issued over 25 million shares of common stock at
$27 per share, raising more than
$684 million in gross
proceeds.
The complaint alleges that the Registration Statement issued in
connection with the IPO contained 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. Specifically, defendants failed to disclose that
Inovalon 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 doing substantial
business within their borders. 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. 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%."
As the market learned the truth following the IPO, the price of
Inovalon common stock declined significantly. At the time of
the filing of the complaint, Inovalon shares were trading at less
than $18 per share, or more than 33%
below the IPO price.
Plaintiff seeks to recover damages on behalf of all purchasers
of Inovalon Class A common stock pursuant or traceable to the
Registration Statement issued in connection with the IPO (the
"Class"). The plaintiff is represented by Robbins Geller,
which has extensive experience in prosecuting investor class
actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law
firms advising U.S. and international institutional investors in
securities litigation and portfolio monitoring. With 200
lawyers in 10 offices, Robbins Geller has obtained many of the
largest securities class action recoveries in history and was
ranked first in both total amount recovered for investors and
number of securities class action recoveries in ISS's SCAS Top 50
Report for the last two years. Robbins Geller attorneys have
shaped the law in the areas of securities litigation and
shareholder rights and have recovered tens of billions of dollars
on behalf of the Firm's clients. Robbins Geller not only
secures recoveries for defrauded investors, it also strives to
implement corporate governance reforms, helping to improve the
financial markets for investors worldwide. Please visit
http://www.rgrdlaw.com/cases/inovalon/ for more
information.
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SOURCE Robbins Geller Rudman & Dowd LLP