|By PR Newswire||
|February 25, 2014 12:39 PM EST||
SAN DIEGO, Feb, 25, 2014 /PRNewswire/ -- The Finkelstein & Krinsk LLP law firm has filed a class action lawsuit against Merge Healthcare Incorporated ("Merge" or the "Company") (Nasdaq: MRGE) and certain of its officers. Filed in United States District Court, Northern District of Illinois, the case is on behalf of all persons or entities who purchased the securities of Merge from August 1, 2012 through January 7, 2014 (the "Class Period"). The lawsuit seeks to recover damages resulting from the Company's alleged violation of the federal securities laws, including Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Merge securities during the Class Period, you have until April 11, 2014 to participate by asking the Court to appoint you as Lead Plaintiff for the class. To discuss this action or discuss your possible alternatives, contact Mark L. Knutson at [email protected] or 877.493.5366 toll free.
Merge develops software solutions that facilitate the sharing of images to create an electronic healthcare environment for patients and physicians worldwide. The Complaint alleges that during the Class Period Defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company. Specifically, Defendants made misleading statements and/or failed to disclose: (1) that aspects of certain customer contracts concerning the Company's eClinical business had been falsified; (2) that as a result the Company's reported subscription backlog was overstated; (3) that the Company lacked adequate controls; and (4) that, as a result of the foregoing, the Defendants' statements about the Company lacked a reasonable basis and were materially false and misleading at all relevant times.
On January 8, 2014, the Company disclosed that it was revising its reported subscription backlog totals after concluding that a former sales employee had falsified certain customer contracts having an apparent value of approximately $5.8 million. Merge securities declined $0.21 per share (nearly 8.33%) on the news to close at $2.31 per share on January 8, 2014, and further declined $0.21 per share the next day.
Finkelstein & Krinsk LLP is acknowledged as one of the premier firms in the areas of securities class litigation and has an enviable record of success.
SOURCE Finkelstein & Krinsk LLP