NEW YORK, Jan. 28, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action has been filed in the USDC for the Northern District of Illinois on behalf of all purchasers of the common stock of Merge Healthcare Incorporated ("Merge" or the "Company") (Nasdaq:MRGE) between August 1, 2012 and January 7, 2014, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934.
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. Following 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 purchased Merge stock during the Class Period, you may, no later than March 17, 2014 request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported 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.
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% decline year-over-year in revenue to $57.2 million. It disclosed these disappointments despite reporting an 82% 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%. Then, the Company made the announcement on January 8th referenced above resulting in a further drop in the stock price.
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