NEW YORK, June 27, 2016 (GLOBE NEWSWIRE) -- The following statement is being issued by Levi & Korsinsky, LLP:
To: All persons or entities who purchased or otherwise acquired Class A common stock of Inovalon Holdings, Inc. (“Inovalon”) (NASDAQ:INOV) pursuant and/or traceable to the February 12, 2015 Initial Public Offering. You are hereby notified that a securities class action lawsuit has been commenced in the USDC for the Southern District of New York. To get more information go to:
http://www.zlk.com/pslra/inovalon-holdings
or contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972. There is no cost or obligation to you.
The complaint alleges that the Registration Statement issued in connection with the IPO contained misleading information and/or omitted material facts. In particular, Inovalon failed to disclose that the Company derives substantial revenues from sales in the city and state of New York, both of which were reforming their corporate tax schemes in order to capture more taxes from out-of-state businesses doing substantial business within their borders; these corporate tax rate increases, which would take effect January 1, 2016—more than a month prior to Inovalon’s IPO—would significantly increase the Company’s effective tax rate and thus lower its 2015 earning potential. This omission rendered false and misleading the Registration Statement’s claim that Inovalon’s year-over-year “effective income tax rate . . . remained relatively stable at 39%.”
If you suffered a loss in Inovalon you have until August 23, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Levi & Korsinsky is a national firm with offices in New York, New Jersey, California, Connecticut, and Washington D.C. The firm’s attorneys have extensive expertise and experience representing investors in securities litigation, and have recovered hundreds of millions of dollars for aggrieved shareholders. Attorney advertising. Prior results do not guarantee similar outcomes.