PHILADELPHIA, April 4, 2006 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Eastern District of Wisconsin, on behalf of purchasers of the common stock of Merge Technologies, Inc. d/b/a Merge Healthcare ("Merge" or the "Company") (Nasdaq:MRGE) between August 2, 2005 through March 16, 2006, inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that 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 purchased Merge securities during the Class Period, you may, no later than May 22, 2006, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Merge securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca