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Levi & Korsinsky, LLP announces the filing of a class action lawsuit in the USDC for the Southern District of New York on behalf of Inovalon Holdings, Inc. shareholders who purchased shares pursuant and/or traceable to the February 12, 2015 Initial Public Offering.
The complaint alleges that the Registration Statement issued in connection with the IPO contained misleading information and/or omitted material facts. In particular, Inovalon failed to disclose that the Company derives substantial revenues from sales in the city and state of New York, both of which were reforming their corporate tax schemes in order to capture more taxes from out-of-state businesses doing substantial business within their borders; these corporate tax rate increases, which would take effect January 1, 2015— more than a month prior to Inovalon’s IPO—would significantly increase the Company’s effective tax rate and thus lower its 2015 earning potential. This omission rendered false and misleading the Registration Statement’s claim that Inovalon’s year-over-year “effective income tax rate . . . remained relatively stable at 39%.”
If you suffered a loss in Inovalon you have until August 23, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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