Allscripts Healthcare Solutions Inc Faces Shareholder Class Action Lawsuit
March 22, 2012 (Update) -- Settlement proposed. According to the Notice:
Securities and Time Period: Allscripts common stock (CUSIP No. 01988P108) and Allscripts options purchased between May 8, 2007 and February 13, 2008, inclusive.
Settlement Fund: $10,150,000 in cash. Your recovery will depend on the number of shares of Allscripts common stock purchased between May 8, 2007 and February 13, 2008, inclusive, and the timing of your purchases and any sales. If claims are submitted for 100% of the eligible shares of Allscripts common stock, the estimated average recovery per share of common stock will be approximately $0.288 before deduction of Court-approved fees and expenses. The actual amount per share you could receive will depend on a number of factors that are explained in the Plan of Allocation contained in Question 9
below. The recovery for options cannot be accurately estimated.
Class: The Court has certified a Class of all purchasers of the publicly-traded securities of Allscripts from May 8, 2007 through February 13, 2008, inclusive, and who were damaged thereby. Excluded from the Class are: (i) Defendants; (ii) members of each Individual Defendant’s immediate family; (iii) any entity in which Defendants have or had a controlling interest; (iv) officers and directors of Allscripts; and (v) the legal representatives, heirs, successors or assigns of any such excluded party. Also excluded from the Class are those Persons who timely and validly request exclusion from the Class pursuant to this Notice.
Reasons for Settlement: Avoids the costs and risks associated with continued litigation, including the danger of no recovery, and provides a benefit to the Class now.
August 4, 2009 -- An investor in Allscripts-Misys Healthcare Solutions (Public, NASDAQ:MDRX) has filed a proposed securities class action lawsuit the United States District Court for the Northern District of Illinois on behalf of purchasers of Allscripts-Misys Healthcare Solutions, Inc. (formerly known as Allscripts Healthcare Solutions, Inc.) (NYSE: MDRX) common stock during the period from May 8, 2007 to February 13, 2008 against Allscripts-Misys Healthcare Solutions and others alleging violations of Federal Securities Laws.
According to the complaint the plaintiff alleges that Allscripts-Misys Healthcare Solutions and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between May 8, 2007 and February 13, 2008 materially false and misleading statements regarding Allscripts-Misys Healthcare Solutions’s business prospects. According to the complaint, during May 2007, Allscripts-Misys Healthcare Solutions went "live” with the newest version of its EHR clinical software, Touchworks, version 11 ("V-11”).
Among other things, the complaint further alleges that Allscripts-Misys Healthcare Solutions lacked the necessary resources to install V-11 software at customer sites, that Allscripts-Misys Healthcare Solutions had no historical basis to estimate the completion of V-11 or the impact V-11 sales might have on its 2007 revenues and earnings, and that Allscripts-Misys Healthcare Solutions was currently experiencing adverse and continuing delays in the installation of V-11 software systems. Then on February 13, 2008, Allscripts-Misys Healthcare Solutions released its actual 2007 financial results, reporting 2007 revenue of $281.9 million or $18 million below its $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, so the complaint, Allscripts-Misys Healthcare Solutions finally admitted to V-11 installation delays that were likely to negatively impact sales and earnings well into 2008. The plaintiff alleges that in response to those announcements, the price of Allscripts-Misys Healthcare Solutions common shares (NYSE: MDRX) fell $4.12 per share, closing at $11.27 on February 14, 2008.
Allscripts-Misys Healthcare Solutions, Inc., located in Chicago, IL, is a provider of clinical software, services, information and connectivity solutions used by the physicians and other health care providers. Allscripts-Misys Healthcare Solutions reported in 2007 Total Revenue of $383.77million with a Net Income of $25.40million and in 2008 Total Revenue of $548.40million with a Net Income of $26.00million. Shares of Allscripts-Misys Healthcare Solutions (Public, NASDAQ:MDRX) traded at $1742 per share recently and were down from over $30 per share in 2007.