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IN RE QUALITY SYSTEMS INC SECURITIES LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: QS91451, CourtName: CLASS ACTION II, State: CA California, UniqueCaseRef: LCD>QS91451, Quality Systems, Stock, Management, Systems Stock, Class Period, Healthcare Information Systems, Practice, Sales, Sell, Growth, Revenues, Report, Physician, Eps, Market, Profit Margins, California Law, Price, Net Income, Insiders, Violations, Competitive Position, Nextgen Product, Medical Records, Future Business Prospects, Underwriters, Materially Adverse, Shares, Hospital Organizations, Reports, Fred Toney, Selling, Selling Increasing Amounts, Higher Profit Margins, Connection, Amounts , ContentID: 120246861

Case Documents
1   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 116674
88 pages
PDF
2 1999-10-27 DOCKET
[ see first page and extracted highlights below  ] ItemID: 116675
5 pages
PDF
3 1997-09-08 Government Exhibit # 1ST AMENDED CONSOLIDATED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 125736
65 pages
PDF
4 1997-07-01 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 125737
61 pages
PDF
Total Documents: 4 documents , 219 pages
Price: $ 34.95


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1 . COMPLAINT

EXTRACTED KEY WORDS
STOCK
DEFENDANTS
MANAGEMENT
HEALTHCARE INFORMATION SYSTEMS
CLASS PERIOD
PRACTICE
SELL
GROWTH
REVENUES
REPORT
BUSINESS
PHYSICIAN
EPS
SALES
MARKET
PROFIT MARGINS
CALIFORNIA LAW
NET INCOME
VIOLATIONS
COMPETITIVE POSITION
NEXTGEN PRODUCT
MEDICAL RECORDS
MATERIALLY ADVERSE
HOSPITAL ORGANIZATIONS
FRED TONEY
SELLING INCREASING AMOUNTS
HIGHER PROFIT MARGINS
FUTURE BUSINESS PROSPECTS
UNDERWRITERS


MILBERG WEISS BERSHAD
     HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
ALAN SCHULMAN (128661)
PATRICK J. COUGHLIN (111070)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058

SOLTAN & ASSOCIATES
VENUS SOLTAN
660 Newport Center Drive
Suite 320
Newport Beach, CA 92660
Telephone: 714/729-3100

Attorneys for Plaintiff

                SUPERIOR COURT OF THE STATE OF CALIFORNIA

                            COUNTY OF ORANGE

JOHN H. GUNDERSON, On Behalf of        )    Case No. 777406
Himself and All Others Similarly       )
Situated,                              )    CLASS ACTION
                                       )
                       Plaintiff,      )    COMPLAINT FOR DAMAGES BASED
                                       )    UPON:
vs.                                    )    (1) VIOLATION OF CAL.
                                       )             CORP. CODE §§25400 AND
QUALITY SYSTEMS, INC., SHELDON         )             25500;
RAZIN, ROBERT J. BECK, GREGORY S. )         (2) VIOLATION OF CAL. CIV.
FLYNN, ABE C. LALANDE, DONN            )             CODE §§1709-1710; AND
NEUFELD, IRMA G. CARMONA, JOHN A. )         (3) VIOLATION OF CAL. BUS.
BOWERS, GRAEME H. FREHNER, GORDON )                  & PROF. CODE §§17200,
L. SETRAN, PACIFIC GROWTH EQUITIES,)                 ET SEQ.
INC., FRED TONEY, M.H. MEYERSON & )
CO., WILLIAM BLOCK, BEAR STEARNS & )        COMPLEX MATTER
CO., INC., KAMAL HAMID, CRUTTENDEN )
ROTH, KATE SHARADIN, COFFIN            )        Plaintiff Demands A
COMMUNICATIONS GROUP and WILLIAM F.)            Trial By Jury
COFFIN,                                )) JUDGE C. ROBERT JAMESON
                   Defendants.         )        DEPT. 11
                                       )

                            SUMMARY OF ACTION
SNIPPETS:
  • common stock of Quality Systems,
  • which sells healthcare information systems for medical
  • management service organizations, between June 26, 1995 and July 3,
  • During the Class Period, defendants artificially
  • inflated Quality Systems' stock to as high as $35-1/4 per share by
  • market at prices as high as $25 per share,
  • However, in early July 1996, after defendants had completed their
  • admitting that its net income and EPS revenues were declining due
  • to weak sales of its own and Clinitec's NextGen products.
  • to report declining revenues and EPS and later losses!
  • Systems' business and Quality Systems' competitive position was
  • Quality Systems' revenues and EPS growth,
  • Razin wanted to sell off as much of his ownership of Quality
  • was "looktoward growth from our core practice management
  • Those licenses have very high profit margins for us,
  • top of that" "from the medical records" part of its business.
  • "sales momentum in core physician practice management systems
  • materially adverse impact on Quality Systems' revenue,
  • hospital organizations and management services organizations,
  • marketing of Clinitec's NextGen product line and sell its products
  • and future business prospects via access to internal corporate
  • Roth (collectively the "Underwriters") are investment banking houses and broker dealers which
  • Fred Toney and Kate Sharadin are securities analysts
  • participate in the scheme and conspiracy to violate California law
  • violations of California law.
  • * Quality Systems was selling increasing amounts of its software as opposed to hardware which

  • 2 . DOCKET

    EXTRACTED KEY WORDS
    ENTRY
    QUALITY SYSTEMS
    WADE CHENEY
    COURT
    EEX
    CALIFORNIA
    JUDGE LINDA
    MCLAUGHLIN
    PLAINTIFF WADE CHENEY
    SHELDON RAZIN
    DEFENDANT ROBERT
    BECK
    GREGORY
    FLYNN
    DEFENDANT ABE
    LALANDE
    DONN NEUFELD
    DEFENDANT IRMA
    CARMONA
    JOHN
    BOWERS
    GRAEME
    FREHNER
    GORDON
    SETRAN
    STAYED PENDING
    OSC
    KRPA
    RESPONSE
    
    
    
    Docket as of October 27, 1999 8:10 pm                            Page 1
    
    Proceedings include all events.                                                      TERMED
    8:97cv549 Wade Cheney v. Quality Systems Inc, et al
    (EEx)
    
                                                                               TERMED (EEx)
                                    U.S. District Court
                    Central District of California (Southern Div)
    
                            CIVIL DOCKET FOR CASE #: 97-CV-549
    
    Wade Cheney v. Quality Systems Inc, et al                                  Filed:
    07/01/97
    Assigned to: Judge Linda H. McLaughlin
                       Referred to: Discovery Elgin Edwards
    Demand: $0,000                                          Nature of Suit: 850
    Lead Docket: None                                       Jurisdiction: Federal
    Question
    Dkt# in other court: None
    
    Cause: 15:78m(a) Securities Exchange Act
    
    
    WADE CHENEY, On behalf of                  William S Lerach
    Himself and All Others                     FAX 619-231-7423
    Similarly Situated                         [COR LD NTC]
               plaintiff                       Patrick J Coughlin
                                               FAX 619-231-7423
                                               [COR LD NTC]
                                               Katherine L Blanck
                                               [COR LD NTC]
                                               Tor Gronborg
                                               [COR LD NTC]
                                               Milberg Weiss Bershad Hynes &
                                               Lerach
                                               1800 One American Plaza
                                               600 W Broadway
                                               Ste 1800
                                               San Diego, CA 92101-3356
                                               619-231-1058
    
                                               Venus Soltan
                                               FAX 714-729-1527
                                               [COR LD NTC]
                                               Soltan & Associates
    
    SNIPPETS:
  • 8:97cv549 Wade Cheney v. Quality Systems Inc, et al (EEx)
  • Central District of California
  • Assigned to: Judge Linda H. McLaughlin
  • GREGORY S FLYNN
  • Elgin Edwards [Entry date 07/08/97]
  • parallel state court action,
  • Sheldon Razin, defendant Robert J Beck, defendant
  • Flynn, defendant Abe C Lalande, defendant Donn Neufeld,
  • defendant Irma G Carmona, defendant John A Bowers, Graeme H
  • Frehner, defendant Gordon L Setran to OSC why action should
  • 8/5/97 6 RESPONSE to OSC re Stay by California State Corut
  • Inc, defendant Sheldon Razin, defendant Robert J Beck,
  • L Setran sent by plf on 7/2/97 (krpa) [Entry date
  • 8/8/97 8 REPLY by plaintiff Wade Cheney to OSC re stay
  • be stayed pending further proceedings in Caveny v. Quality

  • 3 . Government Exhibit # 1ST AMENDED CONSOLIDATED COMPLAINT

    EXTRACTED KEY WORDS
    SYSTEMS STOCK
    DEFENDANT
    PRICE
    SALES
    INSIDERS
    BUSINESS
    REPORTS
    SHARES
    CLASS PERIOD
    SELLING
    CONNECTION
    AMOUNTS
    STOCK OFFERING
    SOLD
    UNDERWRITERS
    CALIFORNIA
    MEETINGS
    OFFICERS
    FUTURE BUSINESS PROSPECTS
    THEREWITH
    FINANCES
    SYSTEMS HOLDINGS
    MANAGEMENT MEETINGS
    ATTENDANCE
    EMPLOYEES
    COMPARED THERETO
    FORECASTS
    OPERATING
    HEALTHCARE INFORMATION COMPANIES
    
     1     MILBERG  WEISS  BERSHAD
              HYNES  &  LERACH  LLP
     2     WILLIAM             S.  LERACH  (68581)
           PATRICK  J.  COUGHLIN  (111070)
     3     KATHERINE  L.  BLANCK  (149110)
           TOR  GRONBORG.  (179109)
     4     LAURA  M.  ANDRACCHIO                      (187773)
           6Oq  West  Broadway,                 Suite          1800
     5     San  Diego,             CA  92101
           Telephone:                619/231-1058
     6     SOLTAN  &  ASSOCIATES
     7     VENUS  SOLTAN  (99144)
           660  Newport              Center     Drive
     8     Suite        320
           Newport             Beach,     CA  92660
     9     Telephone:                714/729-3100
    
    10     Attorneys              for  Plaintiffs
    11                               SUPERIOR  COURT  OF  THE  STATE  OF  CALIFORNIA
    12                                                         COUNTY  OF  ORANGE
    13     JOHN  F.  CAVENY,  On  Behalf                             of     )  Master              Case
    14     Himself             and  All  Others             Similarly       )  (Consolidated           
           Situated,                                                        1
    15                                                                      )  ASSIGNED  TO:  Judge 
                                                      Plaintiff,            )  E.  Thomas
    16                                                                      1
                       vs.                                                  )  CLASS  ACTION
    17     QUALITY  SYSTEMS,  INC.,                         SHELDON               FIRST  AMENDED 
    18     RAZIN,         ROBERT  J.  BECK,  GREGORY  S.                          COMPLAINT  FOR 
           FLYNN,  ABE  C.  LALANDE,  DONN                                        UPON:
    19     NEUFELD,  IRMA  G.  CARMONA,  JOHN  A.                                 (1)       VIOLATION  
           BOWERS,  GRAEME  H.  FREHNER,  GORDON                            ;               CORP.  CODE
    2c     L.  SETRAN,  PACIFIC                  GROWTH  EQUITIES,          )               25500;
           INC.,         FRED  TONEY,  BEAR  STEARNS  &                     1  (2)          VIOLATION  
    21     CO.,  INC.;              KAMAL  HAMID,  CRUTTENDEN               )               CODE 
           ROTH,  KATE  SHARADIN,  COFFIN                                   1  (3)          VIOLATION  
    2;     COMMUNICATIONS  GROUP  and  WILLIAM  F.  )                                       &  PROF. 
           COFFIN,                                                          1               ET
                                                                                            -       
    2:                                                                      1
                                                      Defendants.           )  Plaintiffs              
    24                                                                      )  Trial              Bv 
    2:                                                                            DEPT:  61
                                                                                  DATE  ACTION  FILED: 
    2e
    
    2:
    
    2t
    
    SNIPPETS:
  • vs. Healthcare Information Companies 17 800
  • off large amounts of Quality
  • Defendants Stock sales - Share Vokwne
  • Class Period Sales 16
  • of the State of California.
  • Quality Systems 10 has its principal
  • place of business
  • Quality Systems stock all took place in this state 13 -- California.
  • 1,000 shares of 18 Quality Systems stock on June 3, 1996 at'S29.50
  • Defendant Quality Systems
  • Some of the shares sold by Quality 10 Systems' insiders during the Class Period were acquired
  • about 17 Quality Systems' business, finances, products, markets and present 18 and future
  • thereof and via reports and other 24 information
  • provided to him in connection
  • therewith.
  • budgets and 7 forecasts and reports of actual
  • officers and 9 employees, attendance at management meetings
  • markets 18 and present and future business prospects via access to internal 19 corporate
  • -- 90% of his 26 Quality Systems holdings
  • of actual 6 operations compared thereto),
  • These firms each served as co23 lead underwriters
  • of the Quality Systems' secondary stock offering 24 in March 1996,
  • and selling Quality Systems
  • Quality Systems' stock price at inflated

  • 4 . COMPLAINT

    EXTRACTED KEY WORDS
    STOCK
    OUALITY SYSTEMS
    PURCHASERS
    FRAUD
    THEREIN
    HOLDINGS
    CUSTOMERS
    EPS GROWTH
    LOSSES
    FREHNER
    GRAEME
    BOWERS
    DONN
    LALANDE
    ABE
    FLYNN
    SUITE
    TOR GRONBORG
    BLANCK
    KATHERINE
    COUGHLIN
    PATRICK
    LERACH LLP
    HYNES
    MILBERG WEISS BERSHAD
    
     1     MILBERG  WEISS  BERSHAD
              HYNES  &  LERACH  LLP
     2     WILLIAM            S.  LERACH  (68581)
           PATRICK  J.  COUGHLIN  (111070)
     3     KATHERINE  L.  BLANCK  (149110)
           TOR  GRONBORG  (179109)
     4     600  West  Broadway,                     Suite       1800
           San  Diego,            CA  92101
     5     Telephone:               619/231-1058
    
     6     SOLTAN  &  ASSOCIATES                                               EY
           VENUS  SOLTAN  (99144)                                                             ._,_._"_-
     7     660  Newport             Center          Drive
           Suite       320
     8     Newport            Beach,     CA  92660
           Telephone:               714/729-3100
     9     Attorneys             for  Plaintiff
    10
    
    11                                          UNITED  STATES  DISTRICT                           COURT
    12                                         CENTRAL  DISTRICT                 OF  CALIFORNIA
    13                                                         SOUTHERN  DIVISION
    14     WADE  CHENEY,  On  Behalf                          of  Himself             )  No.97         
    15     and  All  Others              Similarly               situated,            ) 1
    16                                                Plaintiff,                      )  CLASS  ACTION 
                                                                                      1                
    :
    17                vs.
    1
                                                                                      ;  COMPLAINT  FOR
     OF
    18     QUALITY  SYSTEMS,  INC.,                           SHELDON                 )  THE  FEDERAL 
    AWS
           RAZIN,         ROBERT  J.  BECK,  GREGORY  S.                              )
    19     FLYNN,  ABE  C.  LALANDE,  DONN
           NEUFELD,  IRMA  G.  CARMONA,  JOHN  A.                                     ;
    20     BOWERS,  GRAEME  H.  FREHNER  and
           GORDON  L.  SETRAN,                                                        i
    21                                                Defendants.                     i  Plaintiff     
    22                                                                                )  Trial         
    
    23
    24
    25
    
    26
    
    27
    
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP
  • PATRICK J. COUGHLIN
  • KATHERINE L. BLANCK TOR GRONBORG
  • Suite 320
  • 19 FLYNN, ABE C. LALANDE, DONN
  • 20 BOWERS, GRAEME H. FREHNER and
  • 13 losses!
  • and EPS growth;
  • 19 with its customers;
  • 16 Systems stock on May 23, 1996 at $29.47 per share, 5,000 shares on
  • 16 holdings.
  • 25 therein.
  • AS A FRAUD UPON PURCHASERS OF OUALITY SYSTEMS' STOCK
  •    |