NEW YORK, May 2, 2012 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP filed a class action lawsuit on May 2, 2012 in the U.S. District Court for the Northern District of Illinois. The lawsuit was filed on behalf of purchasers of Allscripts Healthcare Solutions, Inc. ("Allscripts" or the "Company") common stock between November 9, 2010, and April 26, 2012, inclusive (the "Class Period").
The action charges Allscripts and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that, throughout the Class Period, the Company, which was formed from the merger of Allscripts-Misys Healthcare Solutions, Inc. and Eclypsis Corporation ("Eclypsis") in August 2010 (the "Merger"), misrepresented its progress in integrating Allscripts' and Eclypsis' disparate systems and the Company's ability to translate its fragmented product lines into revenues.
Allscripts is a provider of healthcare-related information technology services, including systems that manage electronic health records, financial and administrative performance, revenue cycle, and care and discharge operations. The Complaint alleges that Allscripts concealed that: (a) the process of developing a unified product offering after the Merger had suffered debilitating setbacks, including major undisclosed schisms among the most senior levels of the Company, which ultimately resulted in the loss of key personnel and harmful upheaval in Company leadership; (b) a material portion of Allscripts' revenue and net income was predicated on the successful integration of these systems, and substantial business relationships had been destroyed by the Company's inability to make material progress in this area; and (c) as a result of the foregoing, Allscripts lacked a reasonable basis for its claims of progress in post-Merger integration, sound operations, profitable results, and continued growth.
The truth about Allscripts' condition was revealed on April 26, 2012, following the close of the markets, when the Company announced its operating results for the first quarter of 2012. Allscripts shocked the market by reporting earnings sharply below guidance and expectations, as well as: (a) the termination of the Chairman of its Board of Directors; (b) the resignation of three Company directors; and (c) the resignation the Company's Chief Financial Officer. In reaction to these revelations, Allscripts' stock price fell $5.72 per share, or 35.7 percent, to close at $10.30 per share on April 27, 2012, on extraordinary trading volume.
If you are a member of this Class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
If you purchased Allscripts common stock during the Class Period, you may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of Illinois no later than July 2, 2012. A lead plaintiff is a court-appointed representative for absent Class members. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, you may contact one of our representatives, Rachel A. Avan, Esq. of Labaton Sucharow LLP, at (888) 753-2796 or (212) 907-0709, or via email at ravan@labaton.com.
Labaton Sucharow LLP, with offices in New York, New York and Wilmington, Delaware, is one of the country's premier law firms representing institutional investors in class action and complex securities litigation, as well as consumers and businesses in class actions seeking to recover damages for anticompetitive practices. The Firm has been a champion of investor and consumer rights for nearly 50 years, seeking recovery of current losses and necessary governance reforms to protect investors and consumers. Labaton Sucharow has been recognized for its excellence by the courts and its peers. More information about Labaton Sucharow is available at www.labaton.com.
Labaton Sucharow LLP (888) 753-2796 or (212) 907-0709