| Company: | Merge Healthcare Incorporated |
| Ticker Symbol: | MRGE |
| Class Period: | Aug-12-12 to Mar-7-14 |
| Date Filed: | Feb-21-14 |
| Lead Plaintiff Deadline: | Apr-22-14 |
| Court: | Northern District of Illinois |
| Allegations: | |
This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to 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, Defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the existence or amount of certain customer contracts with respect to 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 internal and financial controls; and (4) that, as a result of the foregoing, the defendants' statements about the Company's business, operations and prospects 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 previously reported subscription backlog totals after an internal review concluded that a former sales employee in its eClinical business had falsified the existence or amount of certain customer contracts with an apparent value of approximately $5.8 million in 2012 and 2013, respectively.
On this news, Merge securities declined $0.21 per share, or nearly 8.33%, to close at $2.31 per share on January 8, 2014, and further declined an additional $.21 per share, or approximately 9% on January 9, 2014.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
