HARTFORD, Conn., March 23, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Wisconsin of on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Merge Technologies, Inc. d/b/a Merge Healthcare ("Merge" or the "Company") (Nasdaq:MRGE) between August 2, 2005 and March 16, 2006, inclusive, (the "Class Period").
The Complaint alleges 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.
On 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 are a member of the class, you may, no later than May 22, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.