GRABAR LAW OFFICE INVESTIGATES CLAIMS ON BEHALF OF CURRENT SHAREHOLDERS OF VERADIGM, INC. (NASDAQ: MDRX)
Current Veradigm, Inc. (NASDAQ: MDRX) shareholders who have held shares of the Company’s stock since at least February 26, 2021, have standing to seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.
A securities fraud class action lawsuit alleges that Veradigm, Inc. (NASDAQ: MDRX) made false and/or misleading statements and/or failed to disclose that: (i) Veradigm had overstated its historical revenues by at least $20 million; (ii) Veradigm had artificially inflated its revenue by recording duplicate transactions, among other things, over a more than two-year period; (iii) Veradigm had artificially inflated its earnings and margins and materially misrepresented demand for Veradigm’s products and services; (iv) Veradigm had failed to maintain effective internal controls over its financial reporting; and (v) Veradigm had failed to comply with Generally Accepted Accounting Principles regarding appropriate revenue recognition practices.
On February 28, 2023, Veradigm announced that it had “detected certain internal control failures related to revenue recognition that had occurred over the prior six quarters, resulting in a misstatement of reported revenues during those periods.” Veradigm disclosed that the revenue misstatements caused revenue to be overstated by approximately $20 million from the third quarter of 2021 until the fourth quarter of 2022. On this news, the price of Veradigm stock fell nearly 13%.
Then, on June 13, 2023, Veradigm revealed that it had identified additional revenue misstatements dating back to fiscal year 2020. Veradigm further disclosed that its internal review on the nature and extent of the accounting and internal control errors would take longer than previously disclosed, and Veradigm’s independent auditors needed more time to complete their audit procedures. As a result, Veradigm would not meet the deadline to file its annual report on Form 10-K. On this news, the price of Veradigm stock fell more than 4%.
Moreover, Veradigm received notice from Nasdaq that the Company remains noncompliant with timely filing of all periodic reports because the Company has not filed its Annual Report on Form 10-K for 2022, Q1, Q2, and Q3 10-Q.
On October 6, 2023, the Company received notice from Nasdaq that the temporary stay of delisting had been extended pending a hearing before the Panel on November 16, 2023, and the issuance of a final Panel decision. A hearing before the Panel was conducted on November 16, 2023, but a final Panel decision has not yet been rendered.
If you have held Veradigm shares since prior to February 26, 2021, and would like to learn more at no cost to you, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com or call 267-507-6085.
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