Robbins LLP: Quality Systems, Inc. (QSII) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Quality Systems, Inc. (NasdaqGS: QSII) in the U.S. District Court for the Central District of California, Southern Division. The complaint is brought on behalf of all purchasers of Quality Systems securities between May 26, 2011 and July 25, 2012, for alleged violations of the Securities Exchange Act of 1934 by Quality Systems’ officers and directors. Quality Systems, together with its subsidiaries, 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.
Quality Systems Accused of Misrepresenting Its Financial Condition
According to the complaint, Quality Systems officials aggressively promoted the company’s “extraordinary” and “strong record of growth” while claiming projected increases as high as 35% for its earnings and revenue guidance. Company officials continued to express confidence in Quality Systems’ growth prospects and recommended that investors purchase Quality Systems stock. Despite the company’s representations, Quality Systems’ revenues were decreasing because the company’s new bookings and sales pipeline had begun to decline. On July 26, 2012—three days after Quality Systems affirmed its guidance—the company suddenly announced that its earnings per share had precipitously declined and that it was retracting its guidance. On this news, Quality Systems’ stock fell 33% to close at $15.95 per share on July 26, 2012. Since the truth about the company’s financial condition was revealed, the company’s stock decline has wiped out more than $600 million in shareholder value.
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, or you can complete the form below and we will contact you directly.