Inovalon Investors Get Another Chance at $7 Billion Buyout Case

Delaware’s top court revived shareholder litigation Wednesday over Inovalon Holdings Inc.'s $7.3 billion sale to a private equity consortium led by Nordic Capital.

Although the transaction’s architects put it to a vote of Inovalon’s minority shareholders, they kept a lid on important information about the deal’s financial advisers, so the judge who presided over trial-level proceedings should have taken a harder look at insider conflicts of interest, Justice Karen L. Valihura wrote for a unanimous state supreme court.

“The alleged facts could make a difference to stockholders in analyzing and weighing the advice of the advisors,” Valihura said in a ...