MURRAY, FRANK & SAILER LLP is investigating securities fraud claims against athenahealth, Inc. ("athenahealth" or the "Company") (NASDAQ:ATHN) and certain of its officers, on behalf of purchasers of athenahealth securities between October 29, 2009 and February 25, 2010, inclusive (the "Class Period").
It is alleged that defendants violated the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period insiders profited more than $7.8 million in sales of the Company's securities, while they did not properly recognize revenue and materially overstated its revenue for the last 5 years.
On February 25, 2010, after the market closed, athenahealth announced that its previously reported financial statements could no longer be relied upon, and that the Company would likely need to restate prior financial statements based on its methodology for calculating implementation revenue. Upon the disclosure of this news, on the next trading day, athenahealth common stock dropped $6.7, or 15.35%, to close at $36.84 on heavy trading volume.
If you purchased athenahealth securities within the Class Period, you may move the Court, not later than May 18, 2010, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this litigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
MURRAY, FRANK & SAILER LLP