Allscripts and Eclipsys problems
Looks like all is NOT well at Allscripts (MDRX). Lawsuits announced over the integration of Eclipsys systems into Allscripts systems.
"Specifically, the Complaint alleges that Allscripts Healthcare made misleading statements regarding the Company’s progress in integrating AMHS’ and Eclipsys’ disparate systems and its ability to translate its fragmented product lines into revenue. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period."
JMHO, these large integrations never go as planned and MDRX will probably have ongoing problems and expenses related to the integration.
Revenues have risen, but expenses rose too. Some might expect a bounce in the stock price. JMO, eventually, the ship will right itself but timing is very unknown. Heads are rolling already, but they just need the right staffing to get through the storm.