Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Investors in Merge Technologies, Inc.

Mar 22, 2006, 00:00 ET from Wolf Haldenstein Adler Freeman & Herz LLP

    NEW YORK, March 22 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz
 LLP filed a class action lawsuit in the United States District Court, Eastern
 District of Wisconsin, Milwaukee Division, on behalf of all persons who
 purchased Merge Technologies, Inc. securities (including purchasers of common
 stock, purchasers of call options, and sellers of put options ("Merge" or the
 "Company") (Nasdaq:   MRGE) between August 2, 2005 through March 16, 2006,
 inclusive (the "Class Period"), against defendants Merge Technologies, Inc.,
 d/b/a Merge Healthcare, Richard A. Linden, the Company's CEO, President,
 Director and Chairman of the Executive Committee, and Scott T. Veech, the
 Company's CFO, Secretary and Treasurer.
     The case name is Maiden v. Merge Technologies, Inc., et al.  A copy of the
 complaint filed in this action is available from the Court, or can be viewed
 on the Wolf Haldenstein Adler Freeman & Herz LLP website at
     The complaint alleges that defendants violated the federal securities laws
 by issuing materially false and misleading statements throughout the Class
 Period that had the effect of artificially inflating the market price of the
 Company's securities.
     In particular, the complaint alleges, as it concerns the all-stock merger
 between the Company and Cedara Software Corp., first announced in January 2005
 and completed June 1, 2005, that Merge represented to the investment community
 that the merger was highly-successful and that the Company maintained a strong
 financial position, while concealing: (1) that the Company lacked adequate
 internal controls; and (2) the Company's financial statements for the second
 and third quarters of 2005 were unreliable; and (3) that the Company's
 financial projections were irresponsible considering the knowledge defendants
 possessed concerning the Company's actual financial situation.
     As a result, on February 24, 2006, Merge announced that it was delaying
 the issuance of its fourth quarter 2005 results in order to allow additional
 time to complete an audit of the Company's financial statements, and in
 particular, an investigation into the recording of certain large sales
 contracts as deferred revenue.
     Then, on March 17, 2006, Merge reported, inter alia: (1) that the
 accounting improprieties in fact necessitated that management delay the
 completion of the Company's financial statements for the fiscal year ended
 December 31, 2005; (2) that its audit committee, with the assistance of
 outside counsel, was investigating anonymous complaints; (3) that it
 anticipates a report of material weaknesses in the Company's internal control
 over financial reporting; (4) the suspension of its registration statement on
 Form S-3 relating to issuance of common stock upon exchange of exchangeable
 shares of "Merge/Cedara ExchangeCo Ltd.;" and (5) that its audit committee
 concluded that its previously issued financial statements for the second and
 third quarters 2005, should no longer be relied upon.
     Initial news of the Company's improper practices concerning the Cedara
 merger came as a surprise to investors and caused the stock to decline from
 its February 23, 2006 close of $24.50 per share to $20.50 by the end of
 trading on February 24 -- a one day decline of 16.3 percent. The Company's
 March 17, 2006 announcement of, inter alia, the delay of its fiscal year 2005
 financial results and unreliability of second and third quarter 2005 financial
 results, at the close of trading on March 17, 2006, Merge stock was $15.85,
 down from a previous day's closing price of $17.97, or an additional 11
     Merge's use of these improper practices served to artificially inflate the
 Company's reported earnings during the Class Period. Failure to disclose this
 information constituted material omissions, the ultimate disclosure of which
 harmed the Company's investors. Accordingly, the Company's Class Period
 statements concerning its compliance with applicable laws and regulations were
     If you purchased Merge securities during the Class Period, you may request
 that the Court appoint you as lead plaintiff by May 22, 2006.  A lead
 plaintiff is a representative party that acts on behalf of other class members
 in directing the litigation. In order to be appointed lead plaintiff, the
 Court must determine that the class member's claim is typical of the claims of
 other class members, and that the class member will adequately represent the
 class.  Under certain circumstances, one or more class members may together
 serve as "lead plaintiff." Your ability to share in any recovery is not,
 however, affected by the decision whether or not to serve as a lead plaintiff.
 You may retain Wolf Haldenstein, or other counsel of your choice, to serve as
 your counsel in this action.
     Wolf Haldenstein has extensive experience in the prosecution of securities
 class actions and derivative litigation in state and federal trial and
 appellate courts across the country.  The firm has approximately 60 attorneys
 in various practice areas; and offices in Chicago, New York City, San Diego,
 and West Palm Beach.  The reputation and expertise of this firm in shareholder
 and other class litigation has been repeatedly recognized by the courts, which
 have appointed it to major positions in complex securities multi-district and
 consolidated litigation.
     If you wish to discuss this action or have any questions, please contact
 Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New
 York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq., Gustavo
 Bruckner, Esq., Paulette S. Fox, Esq., or Derek Behnke), via e-mail at
 classmember@whafh.com or visit our website at http://www.whafh.com. All e-mail
 correspondence should make reference to Merge.

SOURCE Wolf Haldenstein Adler Freeman & Herz LLP