Shareholder Class Action Filed Against Merge Technologies, Inc. by the Law Firm of Schiffrin & Barroway, LLP
31 March 2006 r> Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Wisconsin, Milwaukee Division, on behalf of all securities purchasers of Merge Technologies, Inc. (Nasdaq: MRGE) ("Merge" or the "Company") from August 2, 2005 through March 16, 2006, inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com. The Complaint charges Merge and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Merge, doing business as Merge Healthcare, engages in the development and delivery of medical imaging and information management software and services. It provides solutions for both original equipment manufacturer ("OEM") and the end-user healthcare markets. The complaint alleges that defendants' Class Period representations regarding Merge were materially false and misleading when made because defendants failed to disclose: (1) that the Company improperly accounted for revenue and taxes relating to the Cedara merger; (2) as such, the Company's financial results were in violation of GAAP; (3) that the Company lacked adequate internal controls; and (4) that as a result of the foregoing, defendants' Class Period statements concerning its financial performance and prospects were materially false and misleading. On February 24, 2006, Merge disclosed that it would delay the issuance of its fourth quarter results in order to allow additional time to complete the audit of the Company's financial statements. The Company also stated that it needed to defer some revenue: "[c]ertain large sales contracts entered into during the fourth quarter will be recorded as deferred revenue." On news of this, shares of Merge fell $4.00 per share, or 16.33 percent, to close at $20.50 per share on February 24, 2006. Then, on March 17, 2006, before the market opened, Merge announced that it would delay the filing of its 2005 Form 10-K. On news of this, shares of Merge fell $2.12 per share, or 11.80 percent, to close at $15.85 per share on March 17, 2006. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com. If you are a member of the class described above, you may, not later than May 22, 2006 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at info@sbclasslaw.com
Source: prnewswire
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