City of Miami Fire Fighters' & Police Officers' Retirement Trust v. Quality Systems, Inc.

Lead Plaintiffs City of Miami Fire Fighters’ and Police Officers’ Retirement Trust and Arkansas Teacher Retirement System brought this would-be class action on behalf of all persons or entities who purchased or otherwise acquired the common stock of Quality Systems, Inc. (“QSI”) between May 26, 2011, and July 25, 2012 (“the Class Period”). Plaintiffs allege that during the Class Period defendant QSI and several of its officers (“Defendants”) made false or misleading statements about the current and past state of QSI’s sales “pipeline,” and used those statements to support public guidance to investors about QSI’s projected growth and revenue. Individual defendants are Sheldon Razin, QSI’s founder and Chairman of the Board; Steven Plochoeki, QSI’s Chief Executive Officer (“CEO”); and Paul Holt, QSI’s Chief Financial Officer (“CFO”). Plaintiffs allege that the individual defendants had real-time sales information showing a decline in sales due to market saturation beginning as early as April 2011, and that individual defendants knew that their public statements denying any decline were false or misleading.

The district court dismissed Plaintiffs’ complaint with prejudice,…