A class action lawsuit was filed yesterday in the U.S. District Court for the Eastern District of Wisconsin against Merge Healthcare.
The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price of the company's stock.
Merge last week announced a delay in filing its 10-K form with the SEC for fiscal 2005, due to issues relating to revenue recognition and tax accounting matters relating to its merger with Cedara Software of Mississauga, Ontario, in June 2005.
The suit was brought by the Okalahoma City, OK-based law firm of Federman and Sherwood, and stated that the class period is from August 2, 2005, through March 16 this year.
By AuntMinnie.com staff writers
March 23, 2006
Related Reading
Cedara signs Mayo Clinic, March 23, 2006
Merge reports delay in Form 10-K, warns of 2005 restatements, March 17, 2006
Cedara to introduce OrthoWorks ProPlanner at AAOS, March 16, 2006
Cedara to showcase new applications at ECR, February 28, 2006
Merge delays Q4 earnings release, February 24, 2006
Copyright © 2006 AuntMinnie.com
