HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages MDRX Investors with Substantial Losses to Contact Firm Before Jan. 22nd Deadline
San Francisco, California--(Newsfile Corp. - January 18, 2024) - Hagens Berman urges Veradigm Inc. (NASDAQ: MDRX) investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 26, 2021 - June 13, 2023
Lead Plaintiff Deadline: Jan. 22, 2024
Visit:www.hbsslaw.com/investor-fraud/MDRX
Contact An Attorney Now:MDRX@hbsslaw.com
844-916-0895
Veradigm Inc. (MDRX) Securities Fraud Class Action:
On Jan. 10, 2024, Veradigm's new leadership team provided updated fiscal year 2023 guidance, revising estimates issued on Sep. 18, 2023 under previous management. Significantly, Dr. Shih-Yin Ho, Interim CEO, and Lee Westerfield, Interim CFO, reduced the company's estimated revenues by $7-$13 million and adjusted EBITA by $35-$38 million.
Ho and Westerfield have taken the helm at a tumultuous time for Veradigm. Last month, Veradigm announced that as a result of its ongoing internal investigation relating to the company's financial reporting, its board requested the immediate resignations of the company's CEO (Richard J. Poulton) and CFO (Leah S. Jones).
Poulton's and Jones' abrupt departure almost immediately followed the filing of an investor class action suit brought against Veradigm, Poulton and jones.
Specifically, investors allege Defendants misrepresented and concealed that Veradigm: (1) had overstated its historical revenues by at least $20 million; (2) artificially inflated revenues by recording duplicate transactions over more than 2 years; (3) artificially inflated earnings and margins and materially misrepresented demand for its products and services; (4) failed to maintain sufficient internal controls over its financial reporting; and (5) did not comply with GAAP regarding revenue recognition practices.
The truth began to emerge on Feb. 28, 2023, when Veradigm announced that it would not timely file its Q4 2022 earnings and 2022 annual report, claiming the company had discovered revenue-reporting errors triggered by a software tool that caused the company to report inflated numbers over the last six quarters. Veradigm said the errors resulted in an estimated revenue reduction of appx. $20 million from what it reported in Q3 2021 through what it expected to report for Q4 2022. The revenue recognition errors further led the Company to lower its 2023 revenue and adjusted EPS guidance.
Then, on Mar. 22, 2023, Veradigm further reduced its 2023 revenue guidance and disclosed that it would need additional time to file its 2022 annual report. The company explained that its ongoing internal audit had expanded in terms of transaction testing and time period. As a result of the expanded audit procedures, the company revealed that the estimated revenue overstatements now amounted to twice the amount previously announced, or appx. $40 million. The company further determined it would have to restate its financial results for the entire 2021 fiscal year.
Finally, on June 13, 2023, Veradigm revealed that a portion of its revenue misstatements related to its fiscal 2020 and said that it expected to file its dilatory financial statements by Sept. 18, 2023.
If you invested in Veradigm and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Veradigm case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Veradigm should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MDRX@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
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