athenahealth Inc (NASDAQ: ATHN) Investor Securities Class Action Lawsuit 03/19/2010

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Company Name(s): 
athenahealth
Case Name: 
Athenahealth Shareholder Class Action Lawsuit 03/19/2010
Case Status: 
Lawsuit Filed
Case Status: 
Case Dismissed
Affected Securities
NASDAQ: ATHN
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/19/2010
Class Period Begin: 
09/20/2007
Class Period End: 
02/25/2010
Court of Filing: 
U.S. District Court for the District of Massachusetts
Deadline To File for Lead: 
05/17/2010
Case Dismissed: 
09/30/2011
Summary: 

September 30, 2011 - The court granted the defendant's motion to dismiss and the case was dismissed.

October 1, 2010 - Defendants filed a motion to dismiss.

August 2, 2010 - The lead plaintiff filed an amended complaint on behalf of investors who purchased ATHN common shares between September 20, 2007 and February 25, 2010. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between September 20, 2007 and February 25, 2010.

June 3, 2010 - The lead plaintiff and lead counsel were appointed.

May 18, 2010 - Lead plaintiff motions were filed.

March 19, 2010 - An investor in shares of athenahealth Inc (NASDAQ: ATHN) filed a lawsuit in the U.S. District Court for the District of Massachusetts against athenahealth Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between September 20, 2007 and February 25, 2010.

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 of 1934, and Rule 10b-5 promulgated thereunder. On February 25, 2010, after the market closed, athenahealth Inc announced that its previously reported financial statements could no longer be relied upon, and that athenahealth Inc would likely need to restate prior financial statements based on its methodology for calculating implementation revenue. Upon the disclosure of this news, athenahealth Inc (NASDAQ: ATHN) 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. athenahealth Inc'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 $100.77 million with a Net Loss of $3.50 million, in 2008 Total Revenue of $139.55 million with a Net Income of $28.87 million, and in 2009 Total Revenue of $188.53 million with a Net Income of $9.28 million. Shares of athenahealth Inc (NASDAQ: ATHN) recently traded at $37.86 per share, down from its 52 week High of $47.82 per share.