LOS ANGELES, Dec. 08, 2023 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Veradigm Inc. (NASDAQ: MDRX) investors that a lawsuit was filed on behalf of investors that purchased Veradigm securities between February 26, 2021 and June 13, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: email@example.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The class action lawsuit against Veradigm alleges that the company made false or misleading statements and failed to disclose important information during the Class Period. The main allegations in the lawsuit are as follows:
- Veradigm overstated its historical revenues by at least $20 million.
- The company artificially inflated its revenue by recording duplicate transactions and other methods over a period of more than two years.
- Veradigm falsely inflated its earnings and margins and misrepresented the demand for its products and services.
- The company failed to maintain effective internal controls over financial reporting.
- Veradigm did not comply with Generally Accepted Accounting Principles (GAAP) regarding appropriate revenue recognition practices.
Key events include:
- On February 28, 2023, Veradigm acknowledged internal control failures related to revenue recognition that occurred over the previous six quarters, leading to misstated revenues during those periods. The company disclosed that this misstatement caused an overstatement of revenue by approximately $20 million from the third quarter of 2021 to the fourth quarter of 2022. Following this announcement, Veradigm’s stock price dropped nearly 13%.
- Then, on June 13, 2023, Veradigm revealed additional revenue misstatements dating back to the fiscal year 2020. The company also informed that its internal review of the accounting and internal control errors would take longer than initially expected, and its independent auditors required more time to complete their audit procedures. As a result, Veradigm would not be able to file its annual report on Form 10-K by the deadline. This news led to a further decline in Veradigm’s stock price, falling more than 4%.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar