Allscripts Shares Plummet On Company-Wide Restructuring
Allscripts Healthcare Solutions Inc. (NASDAQ:MDRX) which provides electronic records in the healthcare industry, saw its shares drop the most in three years after a drastic shakeup among company board members.
According to Bloomberg, the company's chairman was fired during a board dispute, and in response, three other directors left the company. Stocks then plunged 41 percent to $9.41, after already falling $9.31. The decline marked the largest intraday fall since October 13, 2008.
Chairman Phil Lead was fired on April 25 after board members "engaged in extensive deliberations regarding the leadership of the company," Allscripts said in a statement.
The scuffle and ensuing dismissal came as the company was already said to be lagging behind and not capitalizing on the nationwide push to encourage all medical facilities to use electronic healthcare records.
"While we were contemplating a Draconian scenario, the magnitude of the miss proved to be worse than imaginable," said Sterne Agee analyst Greg Bolan.
The dispute arose in the wake of a recent merger the company was involved in.
According to recent insider trading reports, in the last three months company insiders with Allscripts have sold off $1.92 million in stock.
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