SOURCE: Kendall Law Group

Kendall Law Group

August 05, 2009 14:59 ET

Kendall Law Group Announces Securities Class Action Against Allscripts-Misys Healthcare Solutions

DALLAS, TX--(Marketwire - August 5, 2009) - Kendall Law Group, led by a former federal judge and former US Attorney, today announced that a lawsuit has been filed against Allscripts-Misys Healthcare Solutions, Inc. (NASDAQ: MDRX) for investors who purchased stock that was artificially inflated between May 8, 2007 and February 13, 2008.

Any shareholder, who purchased Allscripts stock during the above time period, may move the Court to serve as lead plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by October 5, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Lead plaintiffs make important decisions which could affect the overall recovery for class members.

According to the complaint, filed in the Northern District of Illinois, Allscripts and certain of its officers and directors violated federal securities laws when the Company issued the newest version of Touchworks. Defendants misrepresented or failed to disclose that they lacked the necessary resources to install the V-11 software at customer sites and that they had no historical basis to estimate the completion of V-11 or the impact that the sales would have on their 2007 revenues and earnings. Defendants also failed to disclose that the complexity of V-11 had materially and adversely lengthened the sales cycle and the revenue recognition cycle for the Company's V-11 sales contracts. They had no reasonable basis for their statements and opinions concerning future financial performance and projections, as they were experiencing adverse and continuing delays in the installation of V-11 software systems.

On February 13, 2008, Allscripts released its actual 2007 financial results, reporting 2007 revenue of $281.9 million or $18 million below the Company's $300 million guidance confirmed in August 2007 and $5 million short of their November earnings guidance revision. During a conference call with investors that same day, Allscripts finally admitted to V-11 installation delays that were likely to negatively impact sales and earnings well into 2008. In response to those announcements, the price of Allscripts common shares fell $4.12 per share, closing at $11.27 on February 14, 2008.

Although every case is different, Kendall Law Group has participated in the recovery of over $800 million for defrauded shareholders. Led by a former federal judge and U.S. Attorney, the firm has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder or serving as a lead plaintiff, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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