On April 26, 2012, Allscripts Healthcare filed a Form 8-K with the SEC detailing its financial results for the first quarter of 2012. Specifically, the Company said 2012 earnings excluding one-time items may be 74 to 80 cents a shares, compared with a February forecast of $1.06 to $1.10 and that first-quarter net income declined to $5.8 million, or 3 cents a shares, on revenue of $364.7 million. Additionally, the Company announced the termination of the Chairman of the Board of Directors, Philip M. Pead, the resignation of three directors, and the resignation of the Company’s Chief Financial Officer, William J. Davis. Following the release of this report, stock in Allscripts Healthcare fell $5.72 per share on April 27, 2012 closing at $10.30, a one-day decline of 35.7% on heavy trading volume of over 87.2 million shares.The Complaint also alleges that these true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the process of developing a unified product offering after the Merger had suffered debilitating setbacks, including major undisclosed schisms among the most senior levels of the Company, which ultimately resulted in the loss of key personnel and harmful upheaval in Company leadership; and (b) a material portion of Allscripts Healthcare’s revenue and net income was predicated on the successful integration of these systems, and substantial business relationships had been destroyed by the Company’s inability to make material progress in this area. If you wish to serve as lead plaintiff, you must move the Court no later than July 2, 2012. A lead plaintiff is a representative party acting 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.