athenahealth, Inc.: RU Announces Investigation
Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at athenahealth, Inc. (“athenahealth” or the “Company”) (NASDAQ: ATHN). Athenahealth engages in the provision of Internet-based business services for physician practices primarily in the United States. The Company was incorporated in 1997 and is headquartered in Watertown, Massachusetts.
Robbins Umeda LLP’s investigation concerns whether the Company’s directors and officers caused the Company to make materially false and misleading representations regarding athenahealth’s business and prospects.
On February 25, 2010, after the market closed, athenahealth announced that its previous financial statements could no longer be relied upon and that it would likely need to restate prior financial statements. As a result of this news, athenahealth’s shares fell from $43.52 on February 25, 2010, to close at $36.84 per share on February 26, 2010, a drop of over 15%.
Soon after this announcement, the Company revealed further details about its anticipated restatement. On March 15, 2010, the Company stated that it needed to amortize its service implementation revenue over a twelve-year period—the time it expects to do business with a new customer—rather than a single year, as it had done previously. As a result, the Company needed to restate its financial results for fiscal years 2005 through 2008, as well as 2008 interim quarters and the first three quarters of 2009.
If you purchased your shares of athenahealth stock prior to October 29, 2009, continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Lauren Levi at 800-350-6003 or by e-mail at firstname.lastname@example.org.
Robbins Umeda LLP is a California-based law firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsarroyo.com.