21 Aug Pedlar the latest executive to leave Merge
West Allis, Wis. – The exodus continues at Merge Technologies, Inc.
The embattled medical imaging software developer, which does business as Merge Healthcare, has announced that it received “a written notification from counsel” to Brian E. Pedlar, its interim co-president and co-CEO, and president of Merge subsidiary Cedara Software, of Pedlar’s departure as of the close of business on Aug. 18.
Pedlar is the fifth executive to leave the company this year amid its continuing inability to report its financial records, and following a class-action suit by shareholders, which ironically stems from its 2005 purchase of Cedara, a developer of custom engineered software for the medical imaging OEM and hospital markets.
The company did say that Robert J. White will serve as its interim president and CEO, and as president of Merge eMed, a medical imaging subsidiary operating in the radiology and specialty practice spaces. White also will continue to report to Michael D. Dunham, chairman of Merge Healtcare’s Board of Directors and its principal executive officer on an interim basis.
Meanwhile, Loris Sartor, vice president of sales, and Jacques Cornet, vice president of business development and marketing, will administer the operations of Cedara Software until a replacement is found for Pedlar.
The company faces delisting from the NASDAQ Stock Market for its inability to timely file reports with the Securities and Exchange Commission (see wistechnology.com//articles/3239/), and has been given an Aug. 29 deadline to provide records for all of 2005 and the first two quarters of 2006.
The NASDAQ Listing Qualifications Panel made the determination to continue the listing of Merge’s common stock despite the company’s failure to meet a July 7 deadline for the filing of its annual report for the fiscal year ended December 31, 2005, and required restatements for the quarter ended March 31, 2006. Since then, the company also has failed to file the required statements for the quarter ended June 30,2006.
Merge has announced the resignations of several top executives as the result of improper financial reporting. Pedlar’s departure was preceded by those of Richard Linden, former president and CEO; William Mortimore, the company’s founder who had been serving as interim CEO after Linden left; former CFO Scott Veech; and David Nosay, former senior vice president of strategic business development.
In addition to its difficulties with financial reporting, Merge is being sued by shareholders who claim the company issued false statements in its 2005 purchase of Cedara Software, which Merge acquired for $325 million in an all-stock transaction. The shareholders, who filed seven class action lawsuits, bought shares of Merge between August 2, 2005, and March 16, 2006.
• NASDAQ will continue to list Merge
• Merge execs step down following investigation
• Merge’s merger is the crux of shareholder lawsuits
• Merge Technologies to merge with software company