When it rains, it pours for electronic health record giant Allscripts, which now is battling a lawsuit protesting its revamped board, Reuters reports. In addition, according to Crain's Chicago Business, as the company's stock price has fallen, embattled CEO Glen Tullman's compensation soared 76 percent last year.
HealthCor Management, a private equity firm that owns about 5 percent of Allscript's outstanding shares, filed the lawsuit on Monday, according to Reuters. The firm is seeking to launch a proxy fight after Tullman rebuffed its demands to resign.
A snowball of woes led up to this point for Allscripts. On April 25, the company ousted Chairman Phil Pead, which was abruptly followed by the resignations of three board members who had come with Pead in the acquisition of Eclipsys. Then the company's CFO left after a dismal quarterly report and lowered outlook for the year.
Afterward, the company adopted a stockholder rights plan, commonly known as a "poison pill" to make a hostile takeover more difficult.
Two new directors have since been named, and the company set a date of June 15 for the annual meeting, when shareholders will vote on whether to keep the board members.
The lawsuit names all seven board members and Tullman in the action, and seeks to postpone that meeting and propose its own slate of directors. It also seeks more information on the dispute that lead to the departure of those from Eclipsys, Health Data Management reports.
To learn more:
- read the Reuters article
- check out the Health Data Management report
- check out Allscripts' stock price