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Quality Systems Elects Two Directors Nominated by Dissident Board Member

By Kristin Jones Quality Systems Inc. (QSII) has elected two directors nominated by dissident board member Ahmed Hussein, and seven of the eight nominees named by the company, amid a long-running proxy battle. Mr. Hussein has criticized the company's operating performance, saying it has suffered as a result of poor corporate governance, largely at the hands of fellow board member Sheldon Razin. The company, which supplies medical-records software, has refuted Mr. Hussein's characterizations, and has censured him for allegedly violating the firm's insider trading policies. It is unclear which of Mr. Hussein's nominees was elected to the board, and the company said it would give more detail in the coming days. The dissident shareholder had previously said John McDuffy, one of his director nominees and a previous Microsoft Corp. (MSFT) executive, would become the company's chairman if Mr. Hussein's slate of directors was elected to the board. Separately, the company said Wednesday that Scott Decker, president of its NextGen Healthcare subsidiary, will resign from the company as of Sept. 7. Mr. Decker has accepted an executive position at another company in the healthcare sector, which Quality Systems said is not a competitor. Shares were up fractionally to $18.26 in after-hours trading. Through the close, the stock was down 51% so far this year. Write to Kristin Jones at Subscribe to WSJ:

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