DEADLINE ALERT: Bronstein, Gewirtz & Grossman, LLC Reminds Investors of Class Action Against Inovalon Holdings, Inc. (INOV) and Lead Plaintiff Deadline August 23, 2016

NEW YORK, NY / ACCESSWIRE / August 18, 2016 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed in the United States District, Southern District of New York, on behalf of those who purchased shares of Inovalon Holdings, Inc. (“Inovalon” or the “Company”) (NASDAQ: INOV), 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”).

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.

Inovalon is a technology company based in Bowie, Maryland. It uses cloud-based analytics and technology to help clients achieve insights that approve clinical and quality outcomes, utilization and financial performance in the healthcare industry.

In February, 2015, Inovalon issued over 25 million shares of its common stock for $27 per share, raising over $684 million in gross proceeds.

The complaint alleges that the Registration Statement released in connection with the IPO contained falsified statements and omitted to state material facts required by governing regulations and necessary for investors to make an informed decision. Defendants failed to disclose that Inovalon makes a large percentage of its revenue from sales in the City of New York and the State of New York, both of which were restructuring their corporate tax schemes in order to capture more taxes from out-of-state businesses like Inovalon doing substantial business within their borders. The corporate tax rate increased, effective January 1, 2015, which was more than a month prior to Inovalon’s IPO, significantly inflated Inovalon’s effective tax rate, lowering its 2015 revenue potential. This information should have been included in the Registration Statement but were not. The Registration Statement claimed that Inovalon’s year-over-year “effective income tax rate…remained relatively stable at 39%.”

Once this information was made public, Inovalon stock dropped. At the time of the filing of the complaint, Inovalon shares were trading below $18 per share, or roughly 33% below the IPO price.

No Class has yet been certified in the above action. To discuss this action, or for any questions, please visit the firm’s site: http://www.bgandg.com/#!inov/kk5vc. You can also contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. 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.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact:

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com

SOURCE: Bronstein, Gewirtz & Grossman, LLC

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