Milwaukee, WI: (Mar-06-08) A derivative lawsuit was brought against Merge Healthcare Incorporated, alleging that the company committed violations of law and breached its duty towards the company and its shareholders. Merge Healthcare is a developer of medical imaging, clinical software applications and developmental tools.
In a recent development in the case, Merge spokespersons declared that a settlement had been reached, in which the company agreed to the execution of an agreement in principle with the plaintiff and other defendants in the derivative action against it. Under the terms of the deal, the company agreed to a one time cash payment of $250,000 for legal costs incurred by the plaintiff. In addition, the settlement documentation will reflect that Merge Healthcare and the other defendants continue to deny that they have committed or attempted to commit any violations of law or breached any duty owed to Merge Healthcare or its shareholders.
Apart from that, the company stated that it had received $1,050,000 in cash from its primary directors and officers' liability insurance carrier for reimbursement of legal expenses in connection with the class action and derivative action against Merge Healthcare and some of its current and former directors and officers. [
