Top Trial Firm Cohen, Placitella & Roth, PC Investigating Merge Healthcare, Inc. for Falsification of Customer Contracts
By: CPR @ Apr 03, 2014
Cohen, Placitella and Roth, PC is investigating claims on behalf of investors who purchased Merge Healthcare, Incorporated (“Merge Healthcare” or the “Company”) (Nasdaq: MRGE) stock between August 1, 2012 and January 7, 2014, inclusive. The investigation concerns whether Merge Healthcare and certain of its officers and/or directors disseminated material false and/or misleading information to investors in violation of Sections 10(b), and 20(a) of the Securities Exchange Act of 1934.
Merge Healthcare offers health stations, clinical trial software and other health data and analytics services designed to engage consumers about their personal health. Commencing in May 2013 there were a series of negative disclosures.
First, the Company’s General Counsel resigned, followed by its Chairman and CEO. Next, the Company disclosed very disappointing second quarter 2013 earnings results, including a 9 percent decline year-over-year in revenue to $57.2 million. It disclosed this disappointment despite reporting an 82 percent increase in its subscription backlog from the second quarter of 2012.
The Company also disclosed earnings per share and revenue that fell far short of what the market expected. On this news, the price of the Company’s stock fell more than $2.00 per share, or more than 45 percent. Then, on January 8, 2014, before the market opened, Merge Healthcare announced that the existence and/or value of millions of dollars of customer contracts had been falsified for the six quarters ending September 20, 2013. On this news, on January 8, 2014, the Company’s stock price that had traded as high as $4.71 per share during the Class Period fell to close at $2.31 per share.
If you have any information on the falsification of Merge Healthcare’s customer contracts or you wish to discuss your rights related to a loss in your investment in Merge Healthcare, please contact Eduardo A. Texidor, Jr. at [email protected] or, toll free, at 1-215-567-3500. For those investors inquiring via email, please be sure to include “Merge Healthcare” in the subject line, the number of shares purchased, and your mailing address and telephone number.
Since 1973, Cohen, Placitella & Roth, PC has been recognized as one of the premier trial law firms in the country. The firm has extensive experience in prosecuting securities litigation involving violations of the federal securities laws, state law derivative actions and mergers and acquisitions cases, representing institutional investors such as public pension plans and union pension funds as well as individual shareholders suffering substantial investment losses due to corporate misconduct. LexisNexis Martindale-Hubbell® annually reports Cohen, Placitella & Roth’s peer rating-the highest AV® – “a testament to professional excellence.” Since the inauguration of its “Best Law Firms”‘ edition in 2010, U.S. News and World Report has annually listed Cohen, Placitella & Roth’s as one of the top-tier class action law firms in the country.
Brought to you by: