athenahealth, Inc Investor Files Lawsuit

An investor in athenahealth, Inc (Public, NASDAQ:ATHN) shares filed a lawsuit in the United States District Court, District of Massachusetts, on behalf of purchasers of athenahealth (ATHN) securities during the period between September 20, 2007 and February 25, 2010, against athenahealth, Inc. and certain of its senior managers.

According to the complaint the plaintiff alleges that athenahealth, Inc. and certain of its senior managers violated the Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder. On February 25, 2010, after the market closed, athenahealth 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 declined almost 13%, 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.

athenahealth, Inc., located in Watertown, MA, is a provider of Internet-based business services for physician practices. The Company's service offerings are based on four integrated components: its Internet-based software, its continually updated database of payer reimbursement process rules, its back-office service operations that perform administrative aspects of billing and clinical data management for physician practices, and its automated and live patient communication services. athenahealth, Inc reported in 2007 Total Revenue of $100.77million with a Net Loss of $3.50million, in 2008 Total Revenue of $139.55million with a Net Income of $28.87million, and in 2009 Total Revenue of $188.53million with a Net Income of $9.28million. Shares of athenahealth (ATHN) recently traded at $37.86 per share, down from its 52weekHigh of $47.82 per share.