It seems hard to believe any Quality Systems Inc. investor would have much to gripe about, given that shares of the Irvine healthcare software company have doubled in the past year.
But Quality, which had a recent market value of $865 million, has at least one unhappy shareholder, and a big one at that: Ahmed Hussein, an Egyptian businessman who owns 2.3 million shares, or some 17% of the company.
In a filing with the Securities and Exchange Commission, Hussein said he “has been pleased with the market performance of the company’s shares.”
But Hussein said he “is concerned that the company’s strong performance may not continue unless corrective action with respect to its board is taken immediately.”
Hussein charges that Quality’s board and management have taken moves that “threaten to turn the clock back and erase all of the progress made.”
So Hussein is gearing up for a proxy fight. After Quality’s management didn’t nominate Hussein for re-election to the board this year, he said he plans to back his own slate of candidates, including himself.
For more on this story, see the Aug. 29 edition of the Business Journal.
