Major Shareholder Drops Lawsuit Against Allscripts | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Major Shareholder Drops Lawsuit Against Allscripts

June 1, 2012
by Gabriel Perna
| Reprints

Chicago-based EHR vendor Allscripts Healthcare Solutions, Inc. has settled litigation with New York City-based investment advisory firm HealthCor Management, L.P. ("HealthCor"), after the former agreed to nominate three independent directors to its Board of Directors. The directors, Stuart L. Bascomb, David D. Stevens and Randy Thurman will be announced at Allscripts’ 2012 Annual Meeting of Stockholders scheduled for June 15. 

As a result, HealthCor will withdraw its claims against Allscripts, currently pending in the Court of Chancery for the State of Delaware and will vote for all of the Company's nominees at the 2012 annual meeting. HealthCor currently owns approximately 6.1 percent of the outstanding shares of Allscripts' common stock.

"We believe this is a positive outcome for Allscripts and its stockholders and we look forward to working collaboratively as we continue to implement our strategic initiatives and make the important and necessary investments to deliver a connected community of health for our clients and build value for all of our stockholders,” Glen Tullman, CEO of Allscripts, said in a statement.

In a previous letter to Tullman, Joseph P. Healey and Arthur B. Cohen, portfolio managers at HealthCor, said the “problem is clearly one of execution and a fundamental problem with leadership.” They originally called for Tullman to resign. With this agreement, Cohen says, they are “pleased to have reached this amicable resolution with Allscripts, which we believe will serve the best interests of all stockholders.”

Allscripts had a tumultuous few weeks starting in April, when along with unfavorable first quarter results, four board members, all from Eclipsys (a company which Allscripts acquired in 2010), left, including Chairmen of the Board Phil Peal. He was replaced by Dennis Chookaszian.

Bascomb is the current CEO and chairman of QualSight, Inc., start-up company in Chicago to create a nationwide network of ophthalmologists to market a managed care refractive surgery program. Stevens is involved as an investor/advisor in private equity, focusing on providing capital to lower-middle market growth companies in the healthcare services industry. Thurman currently serves as the senior advisor and operating partner at New Mountain Capital LLC, a private and public equity firm with assets in excess of $10 billion. 

Along with the three new nominees, the company's nine-member slate for election at the 2012 annual meeting will consist of: Paul Black, Dennis Chookaszian, Robert Cindrich, Philip Green, Michael Kluger and Glen Tullman.  Of the nine board members, eight are independent.  Stockholders of record as of April 24, 2012 are entitled to vote at the Annual Meeting. 

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More



MGMA: Physician Compensation Data Illustrates Nationwide PCP Shortage

Primary care physicians’ compensation rose by more than 10 percent over the past five years, representing an increase which is nearly double that of specialty physicians’ compensation over the same period, according to the Medical Group Management Association (MGMA).

Circulation, Buoy Health Collaborate on Integrated Platform for Patient Transportation

Boston-based startup Circulation Health, a ride-ordering exchange that coordinates medical transportation logistics using Lyft and other transportation partners, is partnering with Buoy Health, also based in Boston, to integrate their platforms to provide patients with an end-to-end healthcare experience.

HITRUST Provides NIST Cybersecurity Framework Certification

The Health Information Trust Alliance (HITRUST), security and privacy standards development and accreditation organization, announced this week a certification program for the National Institute of Standards and Technology's (NIST) Cybersecurity Framework (Framework).

Report: Interoperability in NHS England Faces Similar Barriers as U.S. Healthcare

Electronic patient record interoperability in NHS England is benefiting patient care, but interoperability efforts are facing barriers, including limited data sharing and cumbersome processes falling outside of the clinician workflow, according to a KLAS Research report.

Geisinger National Precision Health Hires Illumina Exec to Lead Business Development

Integrated health system Geisinger has hired a high-profile genetic counselor to head up business development for Geisinger National Precision Health, which was created to extend the Geisinger model on the national scene.

$30M VC Fund Launched to Spur Innovation in Cardiovascular Care

The American Heart Association, together with Philips and UPMC, has announced the launch of Cardeation Capital, a $30 million collaborative venture capital fund designed to spur healthcare innovation in heart disease and stroke care.