IMPAC Medical Systems, Inc. ("IMPAC" or the Company) provides information technology (IT) systems for cancer care. The Company's products provide electronic medical record, imaging, decision support, scheduling and billing applications in an integrated platform to manage the information-related complexities of cancer care, from detection and diagnosis through treatment and follow-up.
The Complaint charges IMPAC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that during the Class Period, Defendants caused IMPAC's shares to trade at artificially inflated levels through the issuance of false and misleading statements about demand for and order bookings and false financial statements. As a result of this inflation, IMPAC was able to complete two public offerings of 4.5 million shares, raising total proceeds of $77.9 million. On March 1, 2004, the Company announced that it intended to restate its financial statements for fiscal years 2003-2003. Then, on May 13, 2004, IMPAC announced disappointing second quarter of fiscal year 2004 results, and reduced its outlook for fiscal 2004. On this news, IMPAC's stock collapsed to $14.62 per share, compared to the prior day's close of $24.85. Later, on June 4, 2004, the Company filed an 8-K with the SEC which stated that the Company had dismissed PricewaterhouseCoopers LLP as the Company's registered public accounting firm and, on August 17, 2004, IMPAC announced the resignation of the Company's independent auditor, Deloitte & Touche LLP, "due to a disagreement with management concerning its application of Statement of Position (SOP) 97-2, 'Software Revenue Recognition,' with respect to the timing of its recognition of certain revenues in its restated financial statements for the fiscal years ended September 30, 2001 through 2003 filed in April 2004." The Company's stock has dropped even farther to the $12 per share range.
By the Order entered on January 26, 2005, U.S. District Judge Vaughn R Walker dismissed the case in accordance with the Notice of Voluntary Dismissal pursuant to Fed. R. Civ. P. 41(a)(1) filed earlier by the Plaintiff on January 24, 2005. The case is closed.
