SAN FRANCISCO, June 28, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts Inovalon Holdings, Inc. (NASDAQ:INOV) investors to IPO Securities Class Action and the August 23, 2016 Lead Plaintiff deadline. The lawsuit was filed in the U.S. District Court for the Southern District of New York.
If you purchased or otherwise acquired securities of Inovalon Holdings, Inc. (“Inovalon” or the “Company”) (NASDAQ:INOV) 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”) and suffered $100,000 or more in losses contact Hagens Berman Sobol Shapiro LLP partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing INOV@hbsslaw.com or visiting https://www.hbsslaw.com/cases/INOV.
The litigation concerns Defendants’ claim within the Registration Statement that Inovalon’s year-over-year “effective income tax rate…remained relatively stable at 39%.” Defendants knew and failed to disclose that just prior to the IPO New York revised its corporate tax regulations in a way that would significantly and adversely impact Inovalon’s effective tax rate and its bottom line.
On August 5, 2015, Defendants finally disclosed the negative impact the New York State and New York City tax reforms had on Inovalon’s fiscal 2015 earnings. They materially reduced 2015 earnings guidance due to a 43% effective tax rate. On this news, the price of Inovalon’s shares declined over 23% to close at $19.53 per share on August 6, 2015.
“The adverse impact on Inovalon posed by the tax revisions were clearly material and should have been – but were not – disclosed to investors,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Inovalon Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email INOV@hbsslaw.com.
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