Allscripts Class Action Suit Settled

 

The Allscripts Class Action Lawsuit revolved around claims that Allscripts broke federal securities laws when it went live with the newest version of its EHR clinical software, Touchworks.  Allscripts denied all wrong doing. 

The Allscripts class action complaint claims that the defendants failed to disclose the following information:

* Allscripts lacked the necessary resources to install V-11 software at customer sites; Allscripts had no historical basis to estimate the completion of V-11 or the impact V-11 sales might have on the company’s 2007 revenues and earnings;
* The complexity of V-11 had materially and adversely lengthened the sales cycle and revenue recognition cycle for the company’s V-11 sales contracts;
* Allscripts was currently experiencing adverse and continuing delays in the installation of V-11 software systems;
* Based on the foregoing, defendants had no reasonable basis for their statements concerning Allscripts’ current and future financial performance and projections.

The case was filed in United States District Court for the Northern District of Illinois and represented anyone who between May 8, 2007 and Feb. 13, 2008 purchased the common stock of Allscripts-Misys Healthcare Solutions.