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The Alexander Firm P.C. Announces Investigation of Merge Healthcare, Inc. on Behalf of Investors
LOS ANGELES--(BUSINESS WIRE)-- The Alexander Firm P.C., A Professional Law Corporation, announces that it is investigating potential claims on behalf of investors of Merge Healthcare, Inc. ("Merge" or the "Company") (NASDAQ:MRGE) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by Merge between February 19, 2013 and January 8, 2014, concerning the Company's operations and financial prospects.
Merge develops software solutions that enable hospitals, imaging centers, integrated delivery networks, and health information exchanges to create information exchanges within their environments and with other entities worldwide. The Company operates in two segments - Merge Healthcare and Merge DNA (Data and Analytics). The investigation is related to the Company's January 8, 2014, announcement that Merge is reducing its previously announced non-GAAP subscription backlog totals for the Merge DNA segment for the quarterly periods ended June 30, 2012 through September 30, 2013. According to the Company, an internal review found that a former sales employee in its eClinical business had falsified the existence or amount of certain customer contracts. The Audit Committee of the Company's Board of Directors then authorized an independent investigation by outside counsel and a forensic accounting firm, which concluded that the former employee had falsified contracts with an apparent value of approximately $5.8 million and $9.4 million in 2012 and 2013, respectively.
If you purchased Merge common stock between February 19, 2013 and January 8, 2014, or if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Vahn Alexander, Esq., The Alexander Firm P.C., A Professional Law Corporation, 1875 Century Park East, Suite 700, Los Angeles, California 90067, by telephone at (310) 407-5335, or by email to firstname.lastname@example.org, or visit our website at www.alexanderfirmpc.com. This press release may be considered Attorney Advertising in some jurisdictions.
Source: The Alexander Firm P.C.