Inovalon, Founder Beat Challenge to $7 Billion Take-Private Sale

Inovalon Holdings Inc. and founder Keith Dunleavy defeated shareholder litigation in Delaware on Monday over the health analytics company’s $7.3 billion sale to a private equity consortium led by Nordic Capital.

Chancellor Kathaleen St. J. McCormick threw the case out, rejecting allegations that Dunleavy and other senior company leaders steered Inovalon into an underpriced take-private transaction that favored insiders while keeping a lid on conflicts of interest and potentially superior offers.

McCormick issued her decision in a telephonic bench ruling for Delaware’s Chancery Court, where she serves as chief judge. No transcript of the ruling, which also dismissed claims against ...