WAYNE, Pa., Feb. 5, 2016 /PRNewswire/ -- Ryan & Maniskas, LLP that a class action lawsuit has been filed in United States District Court for the District of Massachusetts on behalf of all persons or entities that purchased 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").
Imprivata shareholders may, no later than April 4, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Imprivata and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/impr.
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.
If you are a member of the class, you may, no later than April 4, 2016, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/impr. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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