Inovalon Holdings, Inc.

KTMC brought claims by minority stockholders of Inovalon Holdings, Inc. (“Inovalon”) to challenge the take-private of Inovalon by a consortium of private equity investors led by Nordic Capital as well as Inovalon’s founder, CEO, and controlling stockholder Keith Dunleavy. Inovalon provides cloud-based platforms for healthcare providers. In 2021, Inovalon was approached by Nordic who offered to take the company private and offered an attractive rollover and post-closing compensation package for Dunleavy. The Board agreed to a price of $44/share for the take private but, at the eleventh hour, Nordic informed the Board that it could not finance the merger and dropped its bid to $40.50/share.  Despite acknowledging the price drop was unacceptable, not in shareholders’ best interests, and that there was no need to sell, the Board ultimately agreed to $41/share.  Plaintiffs alleged that the merger was unfair and deprived shareholders of Inovalon’s upward trending business at a time when there was no need to sell, and gave insiders preferential treatment. Further, Plaintiffs discovered that the banker that led the sale process, JP Morgan, had significant relationships with the consortium purchasers that were not disclosed to shareholders. Defendants moved to dismiss, which was granted by the Delaware Court of Chancery.

However, Plaintiffs appealed and in May 2024 the Delaware Supreme Court reversed the dismissal based primarily on to the massive undisclosed conflicts of interest between JP Morgan and the private equity consortium. The parties completed extensive discovery, exchanged expert reports, and were preparing to go to trial when the settlement was reached.

If you are a Class Member, you may be eligible to receive a pro rata distribution from the Settlement proceeds. Eligible Class Members include record and beneficial holders of Inovalon Class A common stock as of November 24, 2021 who received $41.00 in exchange for each share of Inovalon common stock converted in connection with the take-private transaction whereby shareholders of inovalon were bought out by a consortium of private equity investors led by Nordic Capital Epsilon SCA, SICAV-RAIF. Eligible Class Members do not need to submit a claim form in order to receive a distribution from the Settlement, if approved by the Court. If you are eligible for a distribution from the Settlement, it will be paid to you directly.

To learn more about the Settlement including questions about whether you qualify as a Class Member, please contact the claims administrator, Kroll Settlement Administrator LLC at 1-833-453-3554 or [email protected]. You can also visit the Settlement website at www.InovalonStockholderClassActionLitigation.com.

Read Settlement Notice Here or Download PDF Here.