A Diagnostics & Imaging Week

A new class action lawsuit has been filed in the U.S. District Court for the Eastern District of Wisconsin, Milwaukee Division, on behalf of all securities purchasers of Merge Technologies (doing business as Merge Healthcare; Milwaukee), for the class period August 2, 2005, through March 16, 2006, which develops medical imaging and information management software and services.

The complaint charges the issuance of misrepresentations concerning revenues related to its merger with Cedara Software (Toronto), and disclosures of quarterly results due to mistakes concerning deferred revenue. News of these problems resulted in the company's shares falling 16.33%, to close at $20.50 per share on Feb. 24. Then, on March 17, 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%, to close at $15.85 per share on March 17, 2006.

A previous suit making the same claims was filed against the company last week.

The new action was filed by the law firm Schiffrin & Barroway.