Merge Healthcare Inc. Settles Securities Lawsuit

Milwaukee, WI: (May-26-08) A consolidated securities class action lawsuit was brought against Merge Healthcare Inc., a maker of medical imaging software. In a recent announcement, company spokespersons said that the company had reached a settlement in the dispute, in which it has raised $20 million from a private investor and resolved the class action suit. Company officials stated that Merge is raising the money through the sale of a $15 million note and 14.3 million shares at 35 cents each to Merrick RIS. After costs, the private placement will raise proceeds of $16.6 million. Records indicate that the suit has been settled with a $16 million payout. Under the terms of the deal, of the settlement amount, Merger will pay $3,025,000 and its insurance carriers the rest. The settlement is subject to closing its financing with Merrick.