VERADIGM INC. SAN DIEGO, Nov. 29, 2023 /PRNewswire/ -- DiCello Levitt LLP announces that purchasers or acquirers of Veradigm Inc. (NASDAQ: MDRX) common stock between February 26, 2021 and June 13, 2023, inclusive (the "Class Period") have until January 22, 2024 to seek appointment as lead plaintiff of the Veradigm class action lawsuit. The lawsuit charges Veradigm and certain of its senior executive officers with violations of the Securities Exchange Act of 1934.
If you purchased shares of Veradigm common stock between February 26, 2021 and June 13, 2023, and suffered substantial losses and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/veradigm/.
You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
The class has not been certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Allegations
Veradigm is a healthcare technology company that offers electronic health records, financial management, population health management, and consumer solutions to U.S. healthcare providers.
The Veradigm lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and omitted to disclose that Veradigm had: (1) overstated its historical revenues by at least $20 million; (2) artificially inflated revenue by, among other things, recording duplicate transactions over a more than two-year period; (3) artificially inflated its earnings and margins and materially misrepresented demand for Veradigm's services; (4) failed to maintain effective internal controls over its financial reporting; and (5) failed to comply with GAAP regarding appropriate revenue recognition practices.
On February 28, 2023, Veradigm revealed 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," and further disclosed that the misstatement led to a $20 million overstatement of revenue from Q3 2021 until Q4 2022. On this news, the price of Veradigm stock fell nearly 13% on heavy trading.
By the end of the Class Period, and following several additional disclosures, the price of Veradigm stock had fallen to just $11.49 per share, half the Class Period high, causing investors to suffer substantial financial loss and economic damage. And having received several notices of non-compliance from the NASDAQ, Veradigm is currently in danger of being delisted.
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SOURCE DiCello Levitt LLP
