San Diego – (Businesswire): Haeggquist & Eck, LLP a shareholder rights litigation firm, is investigating Inovalon Holdings, Inc. (NASDAQ: INOV) (“Inovalon”). Inovalon provides cloud-based data analytics and data-driven intervention platforms to the healthcare industry. The investigation relates to potential breaches of fiduciary duties by Inovalon’s current and/or former directors and officers, and certain underwriters for Inovalon’s February 12, 2015 initial public offering (the “IPO”).
Inovalon completed the IPO in February 2015, selling more than 25 million shares at $27 per share and raising more than $684 million. Inovalon issued a February 2015 Registration Statement and Prospectus (the “Registration Statement”), and was required to disclose in its Registration Statement any known events or uncertainties at the time of the IPO that had caused or were reasonably likely to cause Inovalon’s disclosed financial information to be materially misleading.
The investigation focuses on whether the Registration Statement was materially false when issued because it failed to disclose, among other things, substantial revenues derived from sales in the State of New York. This alleged failure to disclose is particularly material in that New York had announced major reforms to its corporate tax structure; reforms that it is understood would result in a substantial negative impact to Inovalon’s then-current and future financial results. On August 5, 2015, Inovalon admitted that it was reducing its fiscal 2015 earnings guidance due to the increase in the effective tax rate. Inovalon’s stock price declined approximately 30% per share in the day immediately following the August 5 news release.
Inovalon Shareholders Have Legal Options
Concerned current Inovalon shareholders who acquired shares of Inovalon in, or traceable to, the IPO, and who would like more information about their rights and potential remedies can contact attorneys Amber Eck or Kathleen Herkenhoff.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.
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