Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
May 02, 2012 (Shareholders Foundation) -- An investor in NASDAQ:MDRX shares filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged Violations of Federal Securities Laws by Allscripts Healthcare Solutions Inc in connection with certain financial statements.
According to the complaint the plaintiff alleges on behalf of purchasers of Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) common stock between November 9, 2010, and April 26, 2012, that Allscripts Healthcare Solutions Inc and certain of its officers violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the plaintiff alleges that Allscripts Healthcare Solutions, Inc. which was formed from the merger of Allscripts-Misys Healthcare Solutions, Inc. and Eclypsis Corporation in August 2010, allegedly misrepresented its progress in integrating Allscripts' and Eclypsis' disparate systems and the Company's ability to translate its fragmented product lines into revenues.
Allscripts Healthcare Solutions Inc reported that its Total Revenue rose from $548.44million for a 12months period ending on May 31, 2009 to $1.44billion for the 12months period ending on December 31, 2011 and its Net income rose for the respective time period from $26.02million to $73.61million.
Shares of Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) rose from $4.87 per share on October 24, 2008 to as high as $22.41 per share in April 2010.
On June 9, 2010, and Eclipsys (NASDAQ: ECLP) and Allscripts (NASDAQ: MDRX) announced an agreement to merge in an all-stock transaction valued at approximately $1.3 billion under which Eclipsys stockholders (ECLP) will receive 1.2 shares of Allscripts for each share of Eclipsys.
NASDAQ:MDRX shares fell in mid-2010 to slightly under $16 per share but climbed in the first half of 2011 to over $22 per share.
On April 26, 2012 Allscripts Healthcare Solutions Inc announced its First Quarter 2012 financial results. Among other things, Allscripts Healthcare Solutions Inc, also announced that its CFO has decided to leave the Company and that its Chairman of the Board, director and officer of the company has been terminated.
Shares of Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) fell from $16.02 per share on April 26, 2012 to as low as $9.06 per share on Friday April 27, 2012.