INOVALON HOLDINGS,INC. (NASDAQ:INOV) Files An 8-K Other Events
Item 8.01Other Events
On February 20, 2019, Inovalon Holdings, Inc. (the “Company”) executed a settlement agreement in connection with the securities class action suit, Xiang v. Inovalon Holdings, Inc., et.al., No. 1:16-cv-04923, filed in the United States District Court for the Southern District of New York on June 24, 2016, against the Company, certain officers, directors and underwriters in the Company’s initial public offering. The agreement, which is subject to Court approval, provides for the dismissal of all claims against the defendants in connection with the securities class action suit, and provides for a payment to the class of $17 million, of which the Company has agreed to contribute $1.7 million, which is recorded in the Company’s 2018 financial statements, with the remaining amounts to be paid by the Company’s insurance carriers. The Company and the other defendants have vigorously denied, and continue vigorously to deny, the merits of any claims against it and its officers and directors as set forth in the suit, and the proposed settlement contains no admission of liability by the Company and the other defendants.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions. The Company uses words and phrases such as “an agreement,” “subject to,” “would,” “expects,” “provides” and similar expressions to identify forward-looking statements in this report, including forward-looking statements regarding the Company’s ability to settle all claims. Such forward-looking statements are based on information available to the Company as of the date of this report and involve a number of risks and uncertainties, some beyond the Company’s control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) the ability to secure final approval from the Court; (ii) the extent to which individual claimants opt out of the class and pursue individual claims; (iii) the ability to overcome any objections or appeals regarding the settlement; (iv) that all conditions to the settlement agreement will be satisfied; and (v) other risks described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and future filings and reports by the Company. These forward-looking statements should not be relied upon as representing the Company’s views as of any subsequent date, and the Company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
About INOVALON HOLDINGS,INC. (NASDAQ:INOV)
Inovalon Holdings, Inc. is a technology company. The Company combines advanced cloud-based data analytics and data-driven intervention platforms to provide services for health plans, hospitals, physicians, patients, pharmaceutical companies and researchers. The Company operates through developing cloud-based data analytics and data-driven intervention platforms segment and provides related services to its clients. The Company’s datasets, integration technologies, predictive analytics and subject matter expertise allows the Company to provide platforms. Its analytics platforms identify gaps in care, quality, data integrity and financial performance in its clients’ datasets. The Company’s data analytics and intervention platforms consist of four primary components: data integration, advanced analytics, intervention platforms and business processing. The Company integrates data into its systems through its Extract, Transform, Load (ETL) tools and processes.
