NEW YORK, NY / ACCESSWIRE / July 1, 2016 / Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired Inovalon Holdings, Inc. ("Inovalon") (NASDAQ: INOV) common stock 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"). On or about February 12, 2015, Inovalon Holdings, Inc. issued over 25 million shares of common stock at $27 per share, raising more than $684 million in gross proceeds.
Shareholders who have purchased Inovalon Holdings, Inc. common stock and incurred losses, are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
If you purchased shares of Inovalon Holdings, Inc. and suffered a loss, you may request that the Court appoint you lead plaintiff of the proposed class no later than August 23, 2016.
The filed complaint alleges that the Registration Statement issued in connection with the IPO contained 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. Specifically, defendants failed to disclose that Inovalon 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 doing substantial business within their borders. 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.
These material facts should have been disclosed 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%."
As the market learned the truth following the IPO, the price of Inovalon common stock declined significantly. At the time of the filing of the lawsuit, Inovalon shares were trading at less than $18 per share, or more than 33% below the IPO price.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. You may also follow the firm and learn about newly filed cases on Twitter and Facebook.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE: Wolf Haldenstein Adler Freeman & Herz LLP
ReleaseID: 441874
