SAN DIEGO & IRVINE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Quality Systems, Inc. (NasdaqGS: QSII) breached their fiduciary duties to shareholders. Quality Systems develops and markets software and services that automate various aspects of practice management and electronic health records for medical and dental practices in the United States.
View this press release on the firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/quality-systems/
Quality Systems Must Face Lawsuit Accusing Management of Insider Trading and Defrauding Investors
The Ninth Circuit Court of Appeals recently reversed the lower court's decision to dismiss a securities class action complaint filed against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934, and remanded the matter back to the lower court to be litigated. According to the complaint, Quality Systems flaunted substantial sales growth and an increase in projected revenue up until July 23, 2012, despite knowing as early as April 2011 that sales and sales prospects were sharply declining. While Quality Systems' stock was trading high as the result of the company's misstatements, on February 24, 2012, Quality Systems' Chief Executive Officer liquidated nearly 90% of his holdings for nearly $4 million after the company's stock price had increased over 45%. On July 26, 2012, Quality Systems retracted its guidance for fiscal year 2013 and announced its decline in net income and earnings per share. On this news, Quality Systems' stock fell over 32% to close at $15.95 per share on July 26, 2012. Five and a half years later, Quality Systems' stock trades even lower, closing at $14.03 per share on December 18, 2017.
Quality Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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