Class Action Lawsuit Filed Against Allscripts For Misleading Investors With Merging Data Systems–Too Much Code and Not Enough Time – Attack of the Killer Algorithms Chapter 30

Let’s start out with this, if one is a developer/coder this is probably not a great atmosphere to be in right now, I would not want to be

working there writing code to integrate.  I don’t know the entire insides and outs to intelligently talk specifically on some of this but do know we had 2 very differently constructed system that needed to come together with the merger of the two companies for an even more powerful system for medical records.

  I wonder if somebody got sold a bill of goods here?  When you have management involved they are basically “magpies” as far as knowing what the whole job entails as they rely on the “hands on” folks for accurate information. 

On the other hand too, you cannot push the coders and get good algorithms and software and the average person is not really cognizant of how massive these system have become with all the working parts that need to integrate and support each other.  When I did my little integration on the desktop with client server with billing software, that even took me a while but I had the same data product for the back end and I’m sure on the two products merged here.  With existing clients, some would need to be migrated if they are different, the way data works and when as a consumer you sit down and see the magic, you have no clue on all the coding work that goes into the system, you just want it to work. 

According to this article the join in date expires on 2012 for investors to stake their claim.  Sometimes you can’t put developing on a schedule as there’s always something that comes up that is not expected and will take extra time, especially with writing to HIPAA standards and security which is of course a major concern and component with any medical records system.  This was the news a few days ago.  Investors, better ask more questions and in cases with complex software like medical records, don’t think we have web fairies out there flying around.  Just with some of the small stuff I do I have people thinking oh you just sit down for a couple hours and like magic you have their project done..not so. 

Allscripts CFO Resigns Along With A Few Other Key Individuals, Board Fires Chairman–1st Quarter Had Lower Sales And Net Earnings Down–Long Haul to Get Software Technologies Merged So They Work

Let’s go back in time a little further as I have been around this business for a while to Misys Memory Lane when Misys and Allscripts merged in 2008, this was done once with integrated code, so a few years later here we go again and new compilers, etc. to bring in.  I don’t know how much or if any of the old Misys code is left but they grew by integrating and buying up other software so before Allscripts even came along you had integrated code to work with, so one wonders how much more can it go before you scratch and write a new system or considerably revamp big portions of the entire program.  This stuff takes time.  Remember these 2 guys telling us how great it would be and it did work but again we don’t know the back side and now it’s lot more expensive as there’s a lot more code. 

Misys-Allscripts merger is all about SaaS

Misys Sells Allscripts Shares to Enable Eclipsys Merger – Medical Records

Misys is still around but they don’t do medical records any more.  Last year they were even working with Humana to give doctors discounts to buy and again this was the original Allscripts system as the merged system had not arrived.

Revenue projections were based on the successful integration here-so much for business intelligence projections if the code is not all done.  I hope we get to hear more on this topic as folks dig in.  Investors beware of what some software folks claim when you have projects of a big magnitude as this.  I don’t think that maybe they lied outright, they may not have said anything as heck investors and consumers buying this kind of stock don’t understand it anyway and how it all has to come together, they just want money. 

The creative projecting with clients and revenue though I would think that some curious tech minded analysts might have asked about, and they are pretty sharp but when you get down to asking about “real” work in progress and don’t nail down the right specific questions, nobody’s going to tell you. 

So due to this fact and usually it’s the consumers getting bit by the algorithms and this time investors based on this lawsuit so we have the Attack of the Killer Algorithms (or lack of in this case) that came to bite.  Analysts with some IT background might want to think about making some on premise visits in the future you think?  That could or could not help though if they are not shown the entire picture and saw a lot of “virtual” work.  You just don’t know.  If you would like to read more about the other Killer Algorithm Chapter, use the link below or scroll down to the bottom left hand side of my blog for more every day examples on how the Killer Algorithms function today along with a ton of flawed data accumulating out there.   BD

 

Attack of the Killer Algorithms–Digest & Links for All Chapters–How Math and Crafty Formulas Today Running on Servers 24/7 Make Life Impacting Decisions About You–Updated 3-11-2012

 

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Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of investors who purchased Allscripts Healthcare Solutions, Inc. (“Allscripts” or the “Company”) (Nasdaq: MDRX - News) securities between November 9, 2010 and April 26, 2012.

The Complaint alleges that the Company made materially false and misleading statements in regards to its progress in assimilating both Allscripts’ and Eclypsis’ disparate systems and its ability to translate its fragmented product lines into revenue. In particular, the Complaint alleges that defendants concealed from the investing public that: (a) the process of developing a unified product offering after the Merger had suffered debilitating setbacks which ultimately resulted in the loss of key personnel and harmful upheaval in Company leadership; (b) a material portion of Allscripts' revenue and net income was based on the successful integration of these systems and substantial business relationships had been destroyed by the inability to make material progress in this area; and (c) as a result of the foregoing, Allscripts lacked a reasonable basis for its claims of progress in post-Merger integration and continued growth.

http://finance.yahoo.com/news/law-firm-levi-korsinsky-notifies-221000244.html