On April 27, 2001, the defendant filed a motion to dismiss the plaintiff’s consolidated and Amended Complaint. On June 29, 2001, the Court entered the Order by U.S. District Judge Charles P. Kocoras granting the defendant's motion to dismiss plaintiff’s amended complaint. The plaintiff’ complaint was dismissed in its entirety, Judgment was entered, and the case was terminated.
The original Complaint charges that Allscripts violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In particular, Allscripts announced on October 26, 2000, after the close of trading, that its results for the second quarter of 2000 were being revised to correct an issue with respect to the recognition of revenue. Specifically, the company announced that its previously reported revenues for the second quarter of 2000 have been revised from $12.6 million to $12.1 million and previously reported revenues for the first 6 months of 2000 have been revised from $22.2 million to $21.7 million. The revisions increased Allscript's net loss for the second quarter of 2000 from $24.3 million to $24.8 million and net losses for the first six months of 2000 from $26.3 million to $26.8 million. After this announcement, the price of the Company's stock fell nearly 45%.