SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Veradigm Inc. - MDRX

NEW YORK, Oct. 25, 2023

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."