NEW YORK, Feb. 2, 2016 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/imprivata/) today announced that a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of purchasers of Imprivata, Inc. ("Imprivata" or the "Company") (NYSE: IMPR) common stock during the period between July 30, 2015 and November 2, 2015, inclusive (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/imprivata/. 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.
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, and 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.
Then 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 detail 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 common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/imprivata/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP