MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST MERGE TECHNOLOGIES, INC.- MRGE
New York, NY April 7, 2006 - Murray, Frank & Sailer LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Wisconsin, Milwaukee Division on behalf of all securities purchasers of Merge Technologies, Inc. (Nasdaq: MRGE) ("Merge" or the "Company") between August 2, 2005 and March 16, 2006, inclusive (the "Class Period").
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The Complaint charges Merge and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Merge, doing business as Merge Healthcare, engages in the development and delivery of medical imaging and information management software and services. It provides solutions for both original equipment manufacturer ("OEM") and the end-user healthcare markets. The complaint alleges that defendants' Class Period representations regarding Merge were materially false and misleading when made because defendants failed to disclose: (1) that the Company improperly accounted for revenue and taxes relating to the Cedara merger; (2) as such, the Company's financial results were in violation of GAAP; (3) that the Company lacked adequate internal controls; and (4) that as a result of the foregoing, defendants' Class Period statements concerning its financial performance and prospects were materially false and misleading.
On February 24, 2006, Merge disclosed that it would delay the issuance of its fourth quarter results in order to allow additional time to complete the audit of the Company's financial statements. The Company also stated that it needed to defer some revenue: "[c]ertain large sales contracts entered into during the fourth quarter will be recorded as deferred revenue." On news of this, shares of Merge fell $4.00 per share, or 16.33 percent, to close at $20.50 per share on February 24, 2006. Then, on March 17, 2006, before the market opened, Merge announced that it would delay the filing of its 2005 Form 10-K. On news of this, shares of Merge fell $2.12 per share, or 11.80 percent, to close at $15.85 per share on March 17, 2006.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Merge securities on any world exchange between August 2, 2005 and March 16, 2006 and sustained damages, you may, no later than May 22, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]