Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Imprivata, Inc.
Oklahoma City, OK (February 4, 2016) – On February 2, 2016, a securities class action lawsuit was filed in the United States District Court for the District of Massachusetts against Imprivata, Inc. (NYSE: IMPR). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 30, 2015 through November 2, 2015. More specifically, this litigation was filed because Defendants made materially false and misleading statements and/or omitted material information concerning demand for the Company’s IT security offerings and its sales trends, which inflated the price of the Company’s stock.
On October 14, 2015, Imprivata issued a press release preliminarily announcing its third quarter 2015 ("3Q15") financial results for the period ended September 30, 2015. The President and CEO, Omar Hussain, announced that “Based upon our preliminary analysis, three factors contributed to the shortfall. First, we had a few large deals get delayed due to customer implementation schedules and available IT resources. Since these were not competitive losses, we remain confident that we will close the majority of these deals.” The revenues reported for the 3Q15 was $29.2 million, not the $31-$31.5 million originally stated at the start of the Class Period. The Company also disclosed several negative sales trends that had been adversely affecting sales in 3Q15. On this news, the market price of Imprivata common stock declined more than $5 per share on extremely high trading volume.
Finally, on November 2, 2015, the Company issued a press release disclosing 3Q15 financial results along the same lines preliminarily announced on October 14, 2015. On this news, the price of Imprivata common stock declined further, again on unusually high trading volume.
Plaintiff seeks to recover damages on behalf of all Imprivata, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, April 4, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Thu, February 4, 2016
by Robin Hester filed under