SAN DIEGO, July 13, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in New York on behalf of certain purchasers of shares of Inovalon Holdings Inc (NASDAQ:INOV) over alleged Securities Laws Violations by Inovalon Holdings Inc in connection with Inovalon Holdings' February 12, 2015 initial public offering ("IPO").
Investors who purchased shares of Inovalon Holdings Inc (NASDAQ:INOV) have certain options and for certain investors there are short and strict deadlines running. Deadline: August 23, 2016. NASDAQ:INOV investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the Registration Statement issued in connection with the IPO contained allegedly 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.
More specifically, the plaintiff alleges that the defendants failed to disclose that Inovalon Holdings Inc 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 Holdings Inc doing substantial business within their borders.
The plaintiff says that 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 and that 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%."
Shares of Inovalon Holdings Inc (NASDAQ:INOV) declined from as high as $31.75 per share in late February 2015 to as low as $15.12 per share on January 21, 2016.
Those who purchased Inovalon Holdings Inc (NASDAQ:INOV) shares should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.