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Shareholder Class Action Lawsuit Filed Against Merge Technologies, Inc. (d/b/a Merge Healthcare)

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Case ID: 4731 | Stocks | 03/29/2006

A class action has been filed against Merge Technologies, Inc. (d/b/a Merge Healthcare) (MRGE), certain of its officers and directors by stockholders who purchased the company's common stock between August 2, 2005 and March 16, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Several purported shareholder class action lawsuits have been filed against Merge Technologies, Inc. and certain of its executive officers alleging that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants misrepresented that the Company's merger with Cedara Software Corporation was highly successful while concealing: (i) that Merge lacked adequate internal controls; (ii) the Company's financial statements for the second and third quarters of 2005 were unreliable; and (iii) that the Company's financial projections were irresponsible considering the knowledge defendants possessed concerning the Company's actual financial situation.

The complaint further alleges that on or around March 17, 2006, Merge reported, inter alia: (i) that the accounting improprieties necessitated that management delay the completion of its financial statements for the fiscal year ended December 31, 2005; (ii) that its audit committee, with the assistance of outside counsel, was investigating anonymous complaints; (iii) that it anticipates a report of material weaknesses in the Company's internal control over financial reporting; (iv) the suspension of its registration statement on Form S-3 relating to issuance of common stock upon exchange of exchangeable shares of "Merge/Cedara ExchangeCo Ltd.;" and (v) that its audit committee concluded that its previously issued financial statements for the second and third quarters 2005, should no longer be relied upon.

If you bought Merge Technologies, Inc. (d/b/a Merge Healthcare) securities between August 2, 2005 and March 16, 2006, inclusive, and would like to obtain information about the Merge Technologies, Inc. (d/b/a Merge Healthcare) lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.


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