According to the complaint, during May 2007, the Company went “live” with the newest version of its EHR clinical software, Touchworks, version 11 (“V-11”). The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business prospects. The complaint further alleges that defendants misrepresented and/or failed to disclose the following adverse facts: (i) that Allscripts lacked the necessary resources to install V-11 software at customer sites; (ii) that Allscripts had no historical basis to estimate the completion of V-11 or the impact V-11 sales might have on the Company’s 2007 revenues and earnings; (iii) that the complexity of V-11 had materially and adversely lengthened the sales cycle and revenue recognition cycle for the Company’s V-11 sales contracts; (iv) that Allscripts was currently experiencing adverse and continuing delays in the installation of V-11 software systems; and (v) that based on the foregoing, defendants had no reasonable basis for their statements and opinions concerning Allscripts’ current and future financial performance and projections.
On February 13, 2008, Allscripts released its actual 2007 financial results, reporting 2007 revenue of $281.9 million or $18 million below the Company's $300 million guidance confirmed in August 2007 and $5 million short of their November earnings guidance revision. During a conference call with investors that same day, Allscripts finally admitted to V-11 installation delays that were likely to negatively impact sales and earnings well into 2008. In response to those announcements, the price of Allscripts common shares fell $4.12 per share, closing at $11.27 on February 14, 2008.
On October 13, 2009, David Robb was appointed as lead plaintiff. The court approved the selection of Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel and Miller Law LLC as liaison counsel for the class.
On November 25, 2009, an amended complaint was filed by the plaintiffs in this action against the defendants.
On March 16, 2012, a Stipulation of Settlement was filed with the Court. On March 22, 2012, the Court entered the Order Preliminarily Approving Settlement and Providing for Notice.
On July 12, 2012, the Court issued an Order awarding attorneys' fees and expenses.
On July 13, 2012, the Court entered a Final Judgment and Order of Dismissal with Prejudice.