LEXINGTON, KY / ACCESSWIRE / July 22, 2016 / The law firm of Mehr, Fairbanks & Peterson Trial Lawyers, PLLC announces that a shareholder class action lawsuit has been filed against Inovalon Holdings, Inc. (INOV) ("Inovalon" or the "Company") on behalf of purchasers of the Company's common stock issued pursuant or traceable to the Registration Statement and Prospectus (collectively, the "IPO Offering Materials") filed in connection with Inovalon's February 12, 2015 initial public offering of common stock (the "IPO").

Investors who purchased Inovalon common stock pursuant or traceable to the IPO Offering Materials may, no later than August 23, 2016, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information please visit www.mehrfairbanks.com/inovalon/.

Inovalon investors who wish to discuss this action and their legal options are encouraged to contact Mehr, Fairbanks & Peterson Trial Lawyers, PLLC (Erik D. Peterson, Esq.) at (800) 249-3731 or via e-mail at contact@austinmehr.com.

Inovalon is a technology company that provides cloud-based data analytics and data-driven intervention platforms to the healthcare industry in the United States.

On February 12, 2015, Inovalon completed its IPO of common stock. The IPO was a financial success for the Company as it sold over 25 million shares of common stock to investors at $27.00 per share for gross proceeds of over $684 million.

The complaint alleges that the IPO Offering Materials were negligibly prepared, contained untrue statements of material facts, and omitted to state other necessary facts. Among other things, the complaint alleges that the IPO Offering Materials failed to disclose the substantial revenues the Company derived from sales in New York City and the State of New York. This was material information because the IPO Offering Materials also failed to disclose that the State of New York had implemented (prior to the IPO), and New York City was about to implement, substantial corporate tax reforms that would significantly impact Inovalon's tax rate and financial results.

Subsequently, Inovalon reported quarterly financial results that included higher than expected corporate tax rates, which in turn adversely impacted the Company's financial results. For example, on August 5, 2015, Inovalon reported its second quarter 2015 financial results and disclosed that, "New York City enacted corporate tax reform legislation retroactive to January 1, 2015 which increased the Company's effective tax rate by 1.7% and 1.1% for the three and six months ended June 30, 2015, respectively. This legislation negatively impacted Non-GAAP diluted net income per share during the quarter by $0.01. "The Company also reduced its fiscal 2015 Non-GAAP net income and Non-GAAP diluted net income per share guidance on August 5, 2015, "to reflect the effect of intra-quarter changes in New York City tax and other statutory tax regulation changes," and disclosed that "inherent in the revised guidance provided for Non-GAAP net income and Non-GAAP diluted net income per share is an increase in the effective tax rate from 41% to 43%."

Following this news, shares of the Company's stock declined $5.87 per share, or over 23%, to close on August 6, 2015 at $19.53 per share.

Inovalon shareholders may, no later than August 23, 2016, petition the Court to be appointed as a lead plaintiff representative of the class through Mehr, Fairbanks & Peterson, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

For more information about Mehr, Fairbanks & Peterson Trial Lawyers, PLLC, or for additional information about participating in this action, please visit www.mehrfairbanks.com. This is an advertisement.

CONTACT:

Mehr, Fairbanks & Peterson Trial Lawyers, PLLC
Erik D. Peterson, Esq.
201 W. Short Street, STE 800
Lexington, KY 40502
1-800-249-3731 (toll free)
contact@austinmehr.com

SOURCE: Mehr, Fairbanks & Peterson Trial Lawyers, PLLC