SAN FRANCISCO, March 24, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Veradigm Inc. (NASDAQ: MDRX) investors who suffered substantial losses to submit your losses now.
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Veradigm Inc. (MDRX) Investigation:
The investigation focuses on the propriety of Veradigm’s revenue recognition practices.
On Feb. 28, 2023, 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.
These events sent the price of Veradigm shares sharply lower.
“We’re focused on investors’ losses and determining the true cause of Veradigm’s accounting errors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Veradigm and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
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.
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.
Reed Kathrein, 844-916-0895