Lundin Law PC announces a class action lawsuit has been filed against Inovalon Holdings, Inc. ("Inovalon" or the "Company") (INOV) concerning possible violations of federal securities laws in connection with Inovalon’s initial public offering (“IPO”) on February 12, 2015. Investors who purchased or otherwise acquired shares on or about February 12, 2015 should contact the Firm in advance of the August 23, 2016 lead plaintiff motion deadline.
No class has been certified in the above action. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.
According to the complaint, the Company’s Registration Statement issued in connection with the IPO failed to disclose material facts and contained misleading and/or false statements. Inovalon did not disclose that the Company receives substantial revenues from sales in New York City and New York State, both of which were pushing to obtain more taxes from out-of-state businesses like Inovalon. The corporate tax rate increases were implemented on January 1, 2015 and significantly raised Inovalon’s effective tax rate, and lowered the Company’s 2015 earning potential. When this information was revealed to the market, the Company’s common stock declined in value significantly.
Lundin Law PC was created by Brian Lundin, a securities litigator based in Los Angeles.
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Brian Lundin, Esq.