Veradigm Inc. (MDRX) Misled Investors Regarding its Internal Controls Over Financial Reporting
A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Veradigm Inc. (NASDAQ: MDRX) securities between February 26, 2021 and June 13, 2023. Veradigm (formerly Allscripts Healthcare Solutions, Inc.) is a healthcare technology company that offers electronic health records (“EHR”), financial management, population health management, and consumer solutions to over 300,000 U.S. healthcare providers.
According to the complaint, during the class period, defendants emphasized Veradigm’s strong revenue, gross margin, and EBITDA growth to investors during the Company’s quarterly earnings calls. These and similar statements during the class period were materially false and misleading when made. Specifically, defendants failed to disclose, inter alia, that: (a) Veradigm had overstated its historical revenues by at least $20 million; (b) Veradigm had artificially inflated its revenue by recording duplicate transactions, among other things, over a more than two-year period; (c) Veradigm had artificially inflated its earnings and margins and materially misrepresented demand for the Company’s products and services during the class period; (d) Veradigm had failed to maintain effective internal controls over its financial reporting; and (e) Veradigm had failed to comply with Generally Accepted Accounting Principles (“GAAP”) regarding appropriate revenue recognition practices.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Veradigm Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 16, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.