NEW YORK – Healthcor Manangement, LP, one of the largest shareholders of health IT company Allscripts, has filed a lawsuit against the company in an effort to remove CEO Glen Tullman, according to a Reuters report.
According to the news report, HealthCor, which owns 5 percent of Allscripts shares, filed its lawsuit in Delaware's Court of Chancery seeking to strike a company bylaw that requires board nominees be proposed in January. HealthCor had earlier called for Tullman to resign.
The HealthCor move is the most recent in a barrage of troubles that came to light at the end of April when Allscripts fired its board chairman Phil Pead, and three board members resigned in protest. Stock price plummeted by 40 percent. Reportedly unrelated, but critical to analysts, Allscripts' CFO also resigned to take another position outside of healthcare. Analysts downgraded the stock from “buy” to “neutral.”
In its complaint, HealthCor cited Tullman’s failures of execution, and said the chairman and board members who left with him were the ones “most able to protect critical product lines which Eclipsys brought to Allscripts.”
At the crux of Allsripts troubles, insiders say, is the company's failure to integrate products from the two companies after the merger, and failure to integrate the cultures of the two companies, as well.
In a recent interview with Healthcare IT News, Tullman said in his 15 years as CEO of the company his focus has always been on the customers. “They have always been and will always be my primary focus,” he said. “Relative to shareholders, we strive to maintain a constructive dialogue with them and continue to be very focused on generating shareholder value. Once again, the best way to do that is to deliver for our clients.”
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