NEW YORK, May 16, 2006 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP ("Pomerantz" or the "Firm") reminds investors of Merge Technologies Incorporated (Nasdaq:MRGE) d/b/a Merge Healthcare ("Merge" or the "Company") that May 22, 2006 is the deadline to ask the court to appoint you as lead plaintiff for the class. Pomerantz (www.pomerantzlaw.com) filed a lawsuit against the Company and certain of its officers. The lawsuit was filed on behalf of purchasers of the common stock of the Company during the period from August 2, 2005 to March 16, 2006, inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Merge Technologies, based in Milwaukee, provides clinical information systems integration solutions for healthcare organizations. The complaint alleges that defendants' Class Period representations regarding the Company were false and misleading when made because the Company lacked effective internal controls in its financial reporting such that it was unable to properly analyze and/or estimate Merge's future financial and operational performance. As a result of the Company's improper accounting practices, defendants' Class Period statements concerning Merge's financial performance and prospects were materially false and misleading.
Specifically, on February 24, 2006, Merge issued a press release announcing that the Company was delaying the release of its fourth-quarter 2005 financial results, that the Company expected a substantial loss for the quarter and that it was reducing its revenue guidance for the year. Consequently, the Company's common stock plummeted and closed at $20.50. On March 17, 2006, defendants disclosed the Company's true financial position and revealed that accounting improprieties necessitated the delay of the Company's completion of its financial statements for the year ended December 31, 2005.
Specifically, the Company announced the "reason for the delay relates to revenue recognition and tax accounting matters relating to the merger of the Company and Cedara Software Corporation in June 2005." In addition, the Company announced that its management and Audit Committee "concluded that its previously issued financial statement for the quarters ended June 30, 2005 and September 30, 2005" should no longer be relied upon. As a result of these revelations, the Company's common stock declined further and closed at $15.85. The complaint also alleges that during the Class Period, with the Company's stock trading at artificially inflated prices, the Company's insiders sold 680,395 shares for gross proceeds of over $29 million.
Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at (888) 476-6529 (or (888) 4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com
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