News Release For Immediate Release

 

Investor Contact:
Julie Pekarek
Chief Marketing Officer
414.977.4254
ir@merge.com

 

SEC CONCLUDES INVESTIGATION OF MERGE HEALTHCARE

Settlement Imposes No Financial Penalties on Company

Milwaukee, WI, November 4, 2009 – Merge Healthcare (NASDAQ: MRGE), a health IT solutions provider, today announced its settlement with the SEC of the multi-year investigation into the conduct of two former company executives, and the circumstances which led to a restatement in 2006 of the company’s 2002 through 2005 financial statements. This investigation ran concurrent with two shareholder lawsuits, which were resolved in 2008.

The complaint, filed by the SEC in federal court today, charged Merge with record-keeping violations, and charged two of the company’s former executives with accounting fraud. In resolving this matter, the SEC decided not to charge the company with fraud nor assess any penalty against the company for the actions of its former executives. This outcome is in alignment with Merge’s expectations, as previously disclosed.

"Merge Healthcare is glad to see that the SEC considered the facts and circumstances, as well as Merge’s cooperation, in reaching this resolution," says Justin Dearborn, Merge CEO. "This has been a long and difficult process for the company, even though these issues happened several years ago. Employees, customers and shareholders all welcome the closing of this chapter of Merge’s history."

---

 

Merge Healthcare Incorporated develops solutions that automate healthcare data and diagnostic workflow to enable a better electronic record of the patient experience, and to enhance product development for health IT, device and pharmaceutical companies. Merge products, ranging from standards-based development toolkits to sophisticated clinical applications, have been used by healthcare providers, vendors and researchers worldwide for over 20 years. Additional information can be found at www.merge.com.

The matters discussed in this news release may include forward-looking statements, which could involve a number of risks and uncertainties. When used in this press release, the words “will”, “believes”, “intends”, “anticipates”, “expects” and similar expressions, are intended to identify forward-looking statements. Actual results could differ materially from those expressed in, or implied by, such forward-looking statements. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements.