Kendall Law Group, LLP has filed a lawsuit against Allscripts-Misys Healthcare Solutions, Inc. (Allscripts) for investors who purchased stock that was artificially inflated between May 8, 2007 and February 13, 2008. According to the complaint, filed in the Northern District of Illinois, Allscripts and certain of its officers and directors violated federal securities laws when the company went issued the newest of Touchworks.
Defendants misrepresented or failed to disclose that they lacked the necessary resources to install the V-11 software at customer sites and that they had no historical basis to estimate the completion of V-11 or the impact that the sales would have on their 2007 revenues and earnings. Defendants also failed to disclose that the complexity of V-11 had materially and adversely lengthened the sales cycle and the revenue recognition cycle for the company’s V-11 sales contracts. They had no reasonable basis for their statements and opinions concerning future financial performance and projections, as they were experiencing adverse and continuing delays in the installation of V-11 software systems.
Any shareholder, who purchased Allscripts stock between May 8, 2007 and February 13, 2008, may move the Court to serve as lead plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by October 5, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Lead plaintiffs make important decisions which could affect the overall recovery for class members.
On February 13, 2008, Allscripts released its actual 2007 financial results, reporting 2007 revenue of $281.9 million or $18 million below the company’s $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, Allscripts finally admitted to V-11 installation delays that were likely to negatively impact sales and earnings well into 2008. In response to those announcements, the price of Allscripts common shares fell $4.12 per share, closing at $11.27 on February 14, 2008.
Allscripts is a provider of clinical software, services, information and connectivity solutions used by the physicians and other health care providers.