NEW YORK, March 28, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Imprivata Inc. ("Imprivata" or the "Company") (NYSE: IMPR) of the April 4, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased Imprivata securities between July 30, 2015 and November 2, 2015 (the "Class Period"). The case, Coyer v. Hussain et al, No. 1:16-cv-10160 was filed on February 2, 2016, and has been assigned to Judge Leo T. Sorokin.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by overstating the sales trends and demand of its IT security products and services leading to an inflated price of Imprivata common stock. It also charges certain executives and insiders of selling more than $72 million worth of their personally held Imprivata stock at fraud-inflated prices.
Specifically, on October 14, 2015, Imprivata issued a release preliminarily announcing that its 3Q15 sales would come in at or below $29.2 million rather than the revenues in the range of $31-$31.5 million that the Company had stated it was on track to achieve in the quarter on July 29, 2015. The 3Q15 loss per share would also come at between ($0.22) to ($0.23) per share instead of the ($0.20) the Company had led the market to expect.
After the announcement, Imprivata's share price fell from $17.31 per share on October 14, 2015 to a closing price of $12.00 on October 15, 2015—a $5.31 or a 31.2% drop.
Then, on November 2, 2015, the Company disclosed its third quarter financial results, affirming the announcement in October 14 as well as further disclosing adverse sales trends during the third quarter 2015. The Company also announced reduced fiscal 2015 guidance and disclosed that the negative sales trends would continue to diminish sales into fiscal 2016.
After the announcement, Imprivata's share price fell from $10.39 per share on November 2, 2015 to a closing price of $9.42 on November 3, 2015—a $0.97 or a 9.3% drop.
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If you invested in Imprivata securities between July 30, 2015 and November 2, 2015 and would like to discuss your legal rights, visit www.faruqilaw.com/IMPR. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Imprivata's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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