HealthCor Obtains Expedited Review by Delaware Court of Chancery for Lawsuit Against Allscripts
HealthCor Management, L.P. ("HealthCor") today announced that the Delaware Court of Chancery has granted its motion for an expedited hearing on the complaint HealthCor filed against Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX) ("Allscripts" or "the Company"). The Court has established a hearing date of June 14, 2012. HealthCor stated the following:
We are pleased that the Court has agreed to hear our arguments on an expedited basis. We are bringing this action because the termination of the Company's Chairman, and resignation of three other Board members – which occurred after the deadline for stockholders to nominate director candidates for the 2012 Annual Meeting – we believe constitutes a material and dramatic change to the balance of governance at Allscripts. Accordingly, HealthCor contends that an extension of the nomination deadline, as well as a delay of the Allscripts Annual Meeting, is necessary so that all stockholders be given a fair opportunity to nominate director candidates and exercise their voting rights at this critical time of transition for the Company.
We believe that the potential value of Allscripts is significantly higher than the current public valuation. However, despite the Company's significant underperformance, poor execution and internal turmoil, the Allscripts Board has taken no decisive actions to address the considerable issues facing the Company and has moved only to entrench itself further. Change is clearly needed on the Allscripts Board, and if HealthCor is successful in its actions, it intends to nominate a slate of three directors in order to provide stockholders the ability to make a meaningful choice at the Annual Meeting.
As previously disclosed, HealthCor filed the lawsuit on May 21, 2012 seeking, among other things:
An extension of the nomination deadline; That the Allscripts 2012 Annual Meeting be enjoined to allow stockholders who wish to propose a dissident slate a sufficient period of time to solicit proxies in support of their candidates; and That Allscripts be required to set a record date for a date after the public disclosure of the Board-level leadership dispute.
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