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Case Status:    DISMISSED    
On or around 10/01/2004 (Date of order of final judgment)

Filing Date: February 27, 2003

According to the Company’s FORM 10-Q For The Quarterly Period Ended September 30, 2004, on November 14, 2003, the defendants filed with the Court a motion to dismiss the Consolidated Complaint pursuant to Federal Rules of Civil Procedure 12(b)(6) and (9)(b). In a decision entered on October 1, 2004, Untied States District Judge Janet Bond Arterton dismissed with prejudice the Consolidated Complaint as to all defendants.

On or about July 31, 2003, a Consolidated Class Action Complaint was filed
in the United States District Court for the District of Connecticut on behalf of
purchasers of the common stock of VitalWorks Inc. during the class period of
January 24, 2002 to October 23, 2002. The defendants are VitalWorks and three of
our individual officers and directors. Plaintiffs have asserted claims against
the defendants under Section 10(b) of the Securities Exchange Act of 1934 and
against the individual defendants under Section 20(a) of the Exchange Act.
According to the Consolidated Complaint, the defendants are alleged to have made
materially false and misleading statements during the Class Period concerning
our products and financial forecasts. In addition, the Consolidated Complaint
alleges that the individual defendants acted as controlling persons in
connection with our alleged securities law violations. Compensatory damages in
an unspecified amount, pre-judgment and post-judgment interest, costs and
expenses, including reasonable attorneys' fees and experts' fees and other
costs, as well as other relief the Court may deem just and proper are sought.

Three or more additional complaints containing substantially similar causes of action as the above referenced matter were filed. The Court appointed a lead plaintiff and consolidated complaint on or about May 16, 2003.

The complaint alleges, among other things, violations of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 promulgated thereunder and breach of fiduciary duties. The complaint alleges that the defendants made misleading statements and omissions regarding our business and operations, principally in press releases and public conference calls in April 2002 and July 2002, which allegedly had the effect of artificially inflating the market price of our common stock during the Class Period, and that six of our officers, including the defendant officers, sold shares of our common stock during the Class Period.

Specifically, the complaint alleges that the defendants issued false and misleading statements concerning the Company's increasing revenues and future prospects. On October 23, 2002, VitalWorks announced that it had failed to achieve pre- announced third quarter 2002 revenues and was lowering revenue guidance for the remainder of fiscal year 2002; additionally, the Company reported that it was lowering revenue guidance for fiscal year 2003 by over 10%. Market reaction to defendants' belated disclosures was swift and severe. On October 24, 2002, the first day of trading following VitalWorks announcements, the price of VitalWorks common shares fell over 56% in value to close at $3.13 per share on record trading volume of over 14 million shares.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: VWKS
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Connecticut
DOCKET #: 03-CV-00358
JUDGE: Hon. Janet B. Arterton
DATE FILED: 02/27/2003
CLASS PERIOD START: 04/24/2002
CLASS PERIOD END: 10/23/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  3. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  4. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 · securitiesfraud@comcast.net
  5. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  6. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  8. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  9. Shepherd, Finkelman, Miller & Shah, LLC
    35 East State Street, Shepherd, Finkelman, Miller & Shah, LLC, PA 19063
    877.891.9880 · jshah@classactioncounsel.com
No Document Title Filing Date
COURT: D. Connecticut
DOCKET #: 03-CV-00358
JUDGE: Hon. Janet B. Arterton
DATE FILED: 07/31/2003
CLASS PERIOD START: 04/24/2002
CLASS PERIOD END: 10/23/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  3. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  4. Shepherd, Finkelman, Miller & Shah, LLC
    35 East State Street, Shepherd, Finkelman, Miller & Shah, LLC, PA 19063
    877.891.9880 · jshah@classactioncounsel.com
No Document Title Filing Date
No Document Title Filing Date