Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities who purchased or otherwise acquired the common stock of athenahealth, Inc. (“athenahealth” or the “Company”) (Nasdaq: ATHN) between October 29, 2009 and February 25, 2010, inclusive (the “Class Period), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Complaint”).

Are you affected?

• Did you purchase shares of athenahealth, Inc. between October 29, 2009 and February 25, 2010, inclusive (the “Class Period)?
• Did you suffer a loss because of your athenahealth, Inc. investment during the Class Period?
• Do you want to discuss your rights?

Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities who purchased or otherwise acquired the common stock of athenahealth, Inc. (“athenahealth” or the “Company”) (Nasdaq: ATHN) between October 29, 2009 and February 25, 2010, inclusive (the “Class Period), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Complaint”). 

The Complaint names athenahealth and certain of the Company’s executive officers and directors.  The Complaint alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose the truth concerning the Company’s financial statements.  On February 25, 2010, after the market closed, athenahealth announced that its previous financial statements could no longer be relied upon and that it would likely need to restate prior financial statements based on its methodology for calculating implementation revenue, causing the stock to drop approximately 13%, falling from a close of $43.52 on February 25, 2010 to a close of $37.96 on February 26, 2010.  In addition, Company insiders profited more than $7.8 million during the Class Period from their trading in athenahealth stock during the Class Period.

Subsequently, on March 15, 2010, the Company issued a press release after the market closed, announcing that it needed to amortize its service implementation revenue over a period of 12 years, which reflects the amount of time it expects to do business with a new customer, rather than its previous method of amortizing implementation revenue over one year.  As a result, the Company restated its financial results for fiscal years 2005 through 2008, as well as 2008 interim quarters and the first three quarters of 2009.

If you wish to serve as lead plaintiff, you must move the Court no later than May 18, 2010.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Noah R. Wortman, Case Development Director of Rigrodsky & Long, P.A., 919 North Market Street, Suite 980 Wilmington, Delaware, 19801 at (888) 969-4242, or by e-mail to info@rigrodskylong.com.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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