According to the complaint filed March 19, 2010, on February 25, 2010, after the market closed, the defendant announced that its previously reported financial statements could no longer be relied upon, and that the Company would likely need to restate prior financial statements based on its methodology for calculating implementation revenue. Upon the disclosure of this news, athenahealth common stock plummeted almost 13%, falling from a closing price of $43.52 per share on February 25, 2010 to a closing price of $37.96 per share on February 26, 2010.
On June 3, 2010, Judge George A. O’Toole, Jr., granted the motion to appoint the Waterford Township General Employees Retirement System as Lead Plaintiff and approved the Lead Plaintiff’s selection of Robbins Geller Rudman & Dowd LLP as Lead Counsel and Hutchings, Barsamian, Mandelcorn & Zeytoonian LLP as Liaison Counsel. On August 2, 2010, the lead plaintiff filed an Amended Class Action Complaint, and the defendants responded by filing a motion to dismiss on October 1, 2010. The motion was granted on September 30, 2011. The civil case is now terminated.