NEW YORK, Dec. 28, 2023 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Veradigm Inc. (“Veradigm” or the “Company”) (NASDAQ: MDRX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Veradigm and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 28, 2023, Veradigm disclosed that it “detected certain internal control failures related to revenue recognition that have occurred over the prior six quarters, resulting in a mis-statement to reported revenues during those periods.” As a result, the Company reported that it expects “a reduction in revenue from continuing operations of approximately $20 million dollars in the aggregate from what it otherwise reported since the 3rd quarter of 2021 and expected to report for the 4th quarter of 2022.” The Company added that it is “continuing to evaluate the materiality of the mis-statement to determine if the full amount of this adjustment will flow through in the 4th quarter of 2022 or if prior periods will also require adjustment.” As a result, Veradigm revised its 2023 guidance downward and announced that it would not be filing its 2022 annual report on time.
On this news, Veradigm’s stock price fell $2.12 per share, or 12.76%, to close at $14.49 per share on March 1, 2023.
Then, on March 22, 2023, Veradigm further announced that it “expects to report one or more material weaknesses as of December 31, 2022, as well as its related remediation efforts . . . related to the recognition of revenue and certain other non-routine review controls” and “[a]s a result, [Veradigm] concluded that its disclosure controls and procedures were not effective as of December 31, 2022 and that its internal control over financial reporting was not effective as of December 31, 2022.”
On this news, Veradigm’s stock price fell $0.39 per share, or 2.92%, to close at $12.98 per share on March 22, 2023.
Thereafter, on June 13, 2023, Veradigm also revealed that it had identified additional revenue misstatements dating back to fiscal 2020: “[Veradigm] also previously disclosed that it expected to restate previously reported results for 2021 and 2022, and the cumulative impact was expected to be a reduction of revenue from continuing operations of approximately $40 million . . . . [A] portion of this impact is expected to relate to 2020.”
On this news, Veradigm’s stock price fell $0.53 per share, or 4.41%, to close at $11.49 per share on June 14, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
