Case Page

 

Case Status:    SETTLED
On or around 11/12/2015 (Other)

Filing Date: May 02, 2012

According to the law firm press release, the action charges Allscripts and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that, throughout the Class Period, the Company, which was formed from the merger of Allscripts-Misys Healthcare Solutions, Inc. and Eclypsis Corporation ("Eclypsis") in August 2010 (the "Merger"), misrepresented its progress in integrating Allscripts' and Eclypsis' disparate systems and the Company's ability to translate its fragmented product lines into revenues.

Allscripts is a provider of healthcare-related information technology services, including systems that manage electronic health records, financial and administrative performance, revenue cycle, and care and discharge operations. The Complaint alleges that Allscripts concealed that: (a) the process of developing a unified product offering after the Merger had suffered debilitating setbacks, including major undisclosed schisms among the most senior levels of the Company, which ultimately resulted in the loss of key personnel and harmful upheaval in Company leadership; (b) a material portion of Allscripts' revenue and net income was predicated on the successful integration of these systems, and substantial business relationships had been destroyed by the Company's inability to make material progress in this area; and (c) as a result of the foregoing, Allscripts lacked a reasonable basis for its claims of progress in post-Merger integration, sound operations, profitable results, and continued growth.

The truth about Allscripts' condition was revealed on April 26, 2012, following the close of the markets, when the Company announced its operating results for the first quarter of 2012. Allscripts shocked the market by reporting earnings sharply below guidance and expectations, as well as: (a) the termination of the Chairman of its Board of Directors; (b) the resignation of three Company directors; and (c) the resignation the Company's Chief Financial Officer. In reaction to these revelations, Allscripts' stock price fell $5.72 per share, or 35.7 percent, to close at $10.30 per share on April 27, 2012, on extraordinary trading volume.

On November 9, 2012, the Court issued an Order appointing lead plaintiffs and approving the selection of lead counsel. The lead plaintiffs filed their amended complaint on January 10, 2013.

On May 15, 2013, the plaintiffs filed an amended complaint.

On April 1, 2015, the parties entered into a Settlement Agreement. This Settlement was preliminarily approved on April 9. The Settlement was granted final approval and this case was dismissed on July 22.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: MDRX
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: N.D. Illinois
DOCKET #: 12-CV-03297
JUDGE: Hon. James F. Holderman
DATE FILED: 05/02/2012
CLASS PERIOD START: 11/09/2010
CLASS PERIOD END: 04/26/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  2. Wolf Haldenstein Adler Freeman & Herz LLP (Chicago)
    55 West Monroe Street, Suite 1111, Wolf Haldenstein Adler Freeman & Herz LLP (Chicago), IL 60603
    312.984.0000 312.984.0000 ·
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 12-CV-03297
JUDGE: Hon. James F. Holderman
DATE FILED: 01/10/2013
CLASS PERIOD START: 11/08/2010
CLASS PERIOD END: 04/26/2012
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP
    200 S. Wacker Drive Suite 3100 , Robbins Geller Rudman & Dowd LLP , IL 60606
    312.674.4674. 312.674.4674. ·
No Document Title Filing Date