AremisSoft Sinks as it Rebuts Accusations - TheStreet

Updated from 10:41 a.m.

Shares of

AremisSoft

(AREM)

were down 7.2% after being halted for over an hour.

The health care and construction software maker has been surrounded by controversy recently as

reports on

TheStreet.com

and in

The New York Times

said the company has been exaggerating the value of certain contracts. An article in today's

New York Times

raised new questions about contracts with the army in India, and also said the company appears to employ fewer software developers in that country than it led investors to believe.

AremisSoft responded with a detailed press release, claiming the article "inaccurately characterized" the company's business in India. AremisSoft supporters have claimed the company is the victim of a smear campaign by short-sellers.