SAN DIEGO, March 18, 2016 /PRNewswire/ -- Johnson & Weaver, LLP (Johnson & Weaver) announced that it has filed a class action lawsuit in the United States District Court for the District of Massachusetts on behalf of purchasers of Imprivata, Inc. (NYSE: IMPR) securities during the period between July 30, 2015 and November 2, 2015 (the "Class Period").
The complaint charges Imprivata, certain of its officers and directors and certain of its controlling shareholders with violations of the Securities Exchange Act of 1934. Imprivata is an IT security company that provides authentication and access management technology solutions for the healthcare industry in the United States, the United Kingdom, and internationally.
The complaint alleges that during the Class Period, defendants materially misled the investing public about demand for the Company's IT security offerings and its sales trends, thereby inflating the price of Imprivata common stock, by publicly issuing false and misleading statements and omitting to disclose material facts necessary to make defendants' statements about the Company, its business and operations not misleading. According to the complaint, these material misstatements and omissions had the cause and effect of creating in the market an unrealistically positive assessment of Imprivata and its business, prospects and operations, thus causing Imprivata common stock to be overvalued and artificially inflated. Then, with the price of the common stock artificially inflated, certain Imprivata executives and insiders cashed in, selling more than $72 million worth of their personally held Imprivata stock at fraud-inflated prices.
On October 14, 2015, Imprivata issued a press release preliminarily announcing its third quarter 2015 ("3Q15") financial results for the period ended September 30, 2015. The complaint alleges that rather than the revenues of $31-$31.5 million and losses of $0.20 per share that the Company had stated it was on track to achieve at the start of the Class Period, Imprivata reported that its 3Q15 sales would come in at or below $29.2 million and that its losses would exceed $0.22 per share. According to the complaint, the Company also disclosed several negative sales trends that had been adversely affecting sales in 3Q15. On this news, the market price of Imprivata common stock declined precipitously, falling more than $5 per share on extremely high trading volume.
Finally, on November 2, 2015, the Company issued a press release disclosing 3Q15 financial results along the same lines preliminarily announced on October 14, 2015. The complaint alleges that defendants disclosed additional details concerning the adverse sales trends the Company had experienced during the 3Q15, announced reduced fiscal 2015 guidance and disclosed that the negative sales trends would continue to diminish sales into fiscal 2016. According to the complaint, on this news, the price of Imprivata common stock declined further, falling another approximately $2 per share, again on unusually high trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Imprivata securities during the Class Period (the "Class"). The plaintiff is represented by Johnson & Weaver, which has extensive experience in prosecuting shareholder class and derivative actions nationwide.
If you wish to serve as lead plaintiff, you must move the Court no later April 4, 2016. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, or if you would like to request a copy of the complaint that was filed, please contact lead analyst Jim Baker (email@example.com) by email or by phone at 619-814-4471. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP