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Inovalon provides cloud-based data analytics platforms for health insurance plans, pharmaceutical companies, researchers and others in the healthcare industry.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Inovalon business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Registration Statement for the Company's IPO was negligently prepared and, as a result, 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 inaccurate statements of material fact; and (ii) the Individual Defendants approved the said Registration Statement.
On February 10, 2015, Inovalon filed its final amendment to the Registration Statement, which registered 25,555,555 shares of Inovalon common stock for public sale. The Securities and Exchange Commission declared the Registration Statement effective on February 11, 2015. On or about February 12, 2015, the Company priced the IPO at $27 per share and filed the final Prospectus for the IPO, which forms part of the Registration Statement. On February 18, 2015, the Company completed the IPO, which, upon the underwriters' exercise of their option to purchase additional shares, issued and sold a total of 25,364,803 shares, generating over $684 million in gross proceeds. However, since the IPO, Inovalon's stock has imploded, falling from its first day trading high of $33.75 to close at $17.39 on February 2, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP