December 13, 2016 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating Inovalon Holdings, Inc. ("Inovalon” or the "Company") (NASDAQ: INOV) for potential violations of the federal securities laws. Investors who purchased Inovalon securities may be affected.
On December 12, 2016, after the market closed, Inovalon disclosed that it had failed to close a major transaction that the Company had expected would contribute $40 million of revenue in the fourth quarter of 2016. As a result, the Company revised its prior full year 2016 guidance to the range of $426 to $428 million from its prior guidance range of $470 million to $490 million – a cut of $44 million at the low end of the range and a cut of $62 million at the high end of the range.
Following this news, a Piper Jaffray analyst expressed concern that the “lack of disclosure” is a core problem for the Company.
On December 13, 2016, the first trading day following the disclosures, the price of Inovalon shares fell $5.25 per share, more than 35%, to close at $9.60 per share on heavy trading volume.
If you purchased Inovalon shares and would like to discuss our investigation, please contact us by e-mailing
, or by calling 800-290-1952.
Attorneys: Laurence D. King, Jeffrey P. Campisi, Pamela A. Mayer