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Case Status:    DISMISSED    
On or around 03/12/2015 (Court's order of dismissal)

Filing Date: January 16, 2014

According to the law firm press release, Merge Healthcare is a Chicago, Illinois-based company that offers health stations, clinical trial software and other health data and analytics services.

The complaint alleges that during the Class Period, Merge Healthcare issued materially false and misleading statements regarding the Company’s financial performance and future business prospects. Specifically, the complaint alleges that defendants misrepresented or failed to disclose that both the existence and value of millions of dollars of the Company’s eClinical customer contracts had been falsified, and as a result the Company’s reported subscription backlog was overstated during the six quarters ended September 30, 2013, and that the Company was experiencing a continued reluctance amongst large health systems to move forward with enterprise imaging purchases.

After a series of Company disclosures starting in May 2013 regarding the sudden resignation of the Company’s General Counsel and later its Chairman and CEO, and the release of “very disappointing” second quarter 2013 earnings results, including a 9% decline year-over-year in revenue to $57.2 million despite reporting an 82% increase in its subscription backlog from the second quarter of 2012, and earnings per share and revenue that fell well short of what the market had been led to expect, the price of Merge Healthcare stock plummeted more than $2 per share, or more than 45%. Then, on January 8, 2014, before the open of trading, Merge Healthcare announced that the existence and/or value of millions of dollars of customer contracts had been falsified for six quarters ending September 30, 2013, in what it characterized as a rogue employee’s attempt to reach sales quotas and garner additional commissions. On this news, the price of Merge Healthcare stock, which had traded as high as $4.71 per share during the Class Period, fell to a closing price of $2.31 per share on January 8, 2014.

On May 28, 2014, the plaintiffs filed a consolidated amended complaint.

On March 12, 2015, the Court issued an Order granting Defendants' motions to dismiss.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MRGE
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 #: 14-CV-00318
JUDGE: Hon. Elaine E. Bucklo
DATE FILED: 01/16/2014
CLASS PERIOD START: 08/01/2012
CLASS PERIOD END: 01/07/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 · mfistel@holzerlaw.com
  2. Miller Law LLC
    115 S. LaSalle Street, Suite 2910, Miller Law LLC, IL 60603
    312.676.2665 · info@MillerLawLLC.com
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 14-CV-00318
JUDGE: Hon. Elaine E. Bucklo
DATE FILED: 05/28/2014
CLASS PERIOD START: 08/01/2012
CLASS PERIOD END: 01/07/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kessler Topaz Meltzer & Check LLP (Pennsylvania)
    280 King of Prussia Road, Kessler Topaz Meltzer & Check LLP (Pennsylvania), PA 19087
    610.667.7706 610.667.7706 · info@ktmc.com
No Document Title Filing Date