SAN FRANCISCO, July 12, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, reminds Inovalon Holdings, Inc. (“Inovalon” or the “Company”) (NASDAQ:INOV) investors of the August 23, 2016 Lead Plaintiff deadline in the IPO Securities Class Action filed in the U.S. District Court for the Southern District of New York.
If you purchased or acquired securities of Inovalon pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Inovalon’s February 12, 2015 Initial Public Offering (“IPO”), contact Hagens Berman for more information at:
https://www.hbsslaw.com/cases/INOV
or contact Hagens Berman Sobol Shapiro LLP partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, or emailing INOV@hbsslaw.com.
Defendants allegedly failed to disclose in the IPO materials that Inovalon derived substantial revenues from sales in New York City and New York State. Further allegations question the Defendants’ claim that Inovalon’s year-over-year “effective income tax rate…remained relatively stable at 39%” and their omission of a discussion about the January 1, 2015 effective date of New York’s revised tax regulations adversely impacting out-of-state corporations doing business in New York.
On August 5, 2015, Defendants belatedly 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.
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