Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities that purchased the common stock of Allscripts Healthcare Solutions, Inc. ("Allscripts Healthcare" or the "Company") (NASDAQ GS: MDRX) between November 9, 2010 and April 26, 2012, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
If you purchased shares of Allscripts Healthcare during the Class Period, or purchased shares prior to the Class Period and still hold Allscripts Healthcare, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott J. Farrell, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://www.rigrodskylong.com/investigations/allscripts-healthcare-solutions-inc-mdrx.
Allscripts Healthcare, a Delaware corporation headquartered in Chicago, Illinois, is a leading provider of clinical, financial, connectivity and information solutions and related professional services that empower hospitals, physicians and post-acute organizations to deliver world-class outcomes. The Company is the corporate result of the merger of Allscripts-Misys Healthcare Solutions, Inc. ("AMHS") and Eclipsys Corporation ("Eclipsys") that was announced on June 9, 2010 (the "Merger"). The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that Allscripts Healthcare made misleading statements regarding the Company's progress in integrating AMHS' and Eclipsys' disparate systems and its ability to translate its fragmented product lines into revenue. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
On April 26, 2012, Allscripts Healthcare filed a Form 8-K with the SEC detailing its financial results for the first quarter of 2012. Specifically, the Company said 2012 earnings excluding one-time items may be 74 to 80 cents a shares, compared with a February forecast of $1.06 to $1.10 and that first-quarter net income declined to $5.8 million, or 3 cents a shares, on revenue of $364.7 million. Additionally, the Company announced the termination of the Chairman of the Board of Directors, Philip M. Pead, the resignation of three directors, and the resignation of the Company's Chief Financial Officer, William J. Davis. Following the release of this report, stock in Allscripts Healthcare fell $5.72 per share on April 27, 2012 closing at $10.30, a one-day decline of 35.7% on heavy trading volume of over 87.2 million shares.
The Complaint also alleges that these true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (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; and (b) a material portion of Allscripts Healthcare's 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.
If you wish to serve as lead plaintiff, you must move the Court no later than July 2, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Contacts:
Rigrodsky & Long, P.A.
Scott J. Farrell, Esquire
Peter
Allocco
(888) 969-4242
(516) 683-3516
Fax: (302) 654-9430
info@rigrodskylong.com
http://www.rigrodskylong.com
