Election Fraud at Quality Systems?

At Quality Systems (QSII), six of management’s eight candidate were just elected to the board of directors. But a dissident group, led by Dr. Ahmed Hussein, may sue for a recount. The Motley Fool is on the case.

The problem, according to documents obtained by The Motley Fool, is that various brokerages submitted unsigned proxies that were voted in favor of the company’s slate. These proxies represent shares, held in street name at the brokerages, that individual shareholders failed to submit themselves. According to Dr. Hussein, unsigned proxies cannot be counted in a disputed election, and without those votes—approximately 832,000 out of a total 13.1 million shares outstanding—all three of his nominees would have been elected.

Posted by on October 6th, 2005 at 8:27 pm


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