You obviously did not see the big announcement recently that they are being class action sued by a law firm in NJ for Y2K compliance.
Wednesday August 5, 9:30 am Eastern Time
Company Press Release
Year 2000 Class Action Filed Against Medical Manager Corp.
NEW YORK--(BUSINESS-WIRE)--Aug. 5, 1998--The law firms of Bernstein Litowitz Berger & Grossmann LLP and
Sherman, Silverstein, Kohl, Rose & Podolsky filed a class action lawsuit against Medical Manager Corp. [Nasdaq:MMGR -
news] alleging that Medical Manager violated the New Jersey Unfair Trade Practices Act when the company aggressively
marketed non-Year 2000 compliant computer software versions of The Medical Manager, without disclosing that the software
was unable to process dates after Dec. 31, 1999. The Medical Manager is an integrated physicians' practice management
system encompassing patient care, clinical, financial and management applications. The Medical Manager is used by solo
practitioners, management service organizations, physicians' practice management organizations, managed care organizations
and other providers of health care services.
According to the complaint, Medical Manager sold thousands of licenses for non-Year 2000 compliant software program to
this segment of the health care industry even though the company knew, or should have known, that the software would not be
functionally operable after Dec. 31, 1999. The complaint alleges that Medical Manager used false and misleading
representations and omissions of material facts regarding the defective nature of prior versions of The Medical Manager
software, until as late as November 1997. The complaint further states that the ''physicians and other health care providers
who have purchased and now rely on this software to operate their businesses will have to spend thousands of dollars to
upgrade to Year 2000 compliant software to purchase version 9.0 -- the only version of The Medical Manager software that is
fully Year 2000 compliant.''
The Medical Manager Version 9.0 was released in November 1997 as the only Year 2000 compliant version of the software.
However, the company did not provide free upgrades to the versions that it sold prior to releasing version 9.0. In fact, the
complaint alleges that Medical Manager views the necessity of pre-version 9.0 purchasers to upgrade to Year 2000 compliant
software as ''an opportunity to reap substantial profits from new sales.''
''It appears to us,'' said Jeffrey A. Klafter, a partner with Bernstein Litowitz Berger & Grossmann LLP, ''that Medical
Manager plans to profit on its failure to supply Year 2000 compliant versions of The Medical Manager in the first place. We
intend to use the full scope of the Unfair Trade Practices Laws to prevent this from occurring.''
The lawsuit is filed as a class action on behalf of all purchasers of The Medical Manager prior to Version 9.0, which was
released on or about Nov. 17, 1997. Plaintiffs seek damages, as well as injunctive relief, to compel Medical Manager to rectify
the problem without charge. The suit is currently pending in Federal Court in New Jersey.
Bernstein Litowitz Berger & Grossmann LLP prosecutes complex class actions, nationwide, on behalf of individuals and
investors in the securities fraud and consumer fraud areas, as well as major employment discrimination cases. The firm
established a Year 2000 Practice Group under the direction of Jeffrey A. Klafter and Seth R. Lesser, and is currently litigating
several other Year 2000 cases.
Sherman, Silverstein, Kohl, Rose & Podolsky is a New Jersey firm which handles litigation in federal and state courts, including
complex class actions and other litigation involving consumer fraud. The firm also represents in excess of 1,000 physicians
throughout New Jersey, Pennsylvania and Delaware. The firm has established a Year 2000 Practice Group under the direction
of Harris L. Pogust and Allan C. Milstein. In addition to litigating Year 2000 cases, Sherman Silverstein counsels its clients in
ways to avoid Year 2000 liability.
For more information about the Medical Manager lawsuit or other Year 2000 litigation issues, you may call Jeffrey A. Klafter
or Seth R. Lesser, partners at Bernstein Litowitz Berger & Grossmann LLP at 212/554-1400 or toll-free at 800/380-8496 or
visit our web site at www.blbglaw.com; or you may call Harris L. Pogust, a partner at Sherman, Silverstein, Kohl, Rose &
Podolsky at 609/662-0700.
Contact:
Bernstein Litowitz Berger & Grossmann LLP, New York
Ava C. Thorin, 212/554-1429 |
