The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Veradigm Inc. (“Veradigm” or the “Company”) (NASDAQ: MDRX) securities during the period from February 26, 2021 through June 13, 2023 (the “Class Period”). Investors have until January 22, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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 shares declined by $2.12, or approximately 12.76%, from $16.61 per share to close at $14.49 on March 1, 2023.

Then, on June 13, 2023, Veradigm revealed that it had identified additional revenue misstatements dating back to fiscal year 2020. The Company 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 shares declined by $0.53, or approximately 4.41%, from $12.02 per share to close at $11.49 on June 14, 2023.

The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that Veradigm: (i) overstated its historical revenues by recording duplicate transactions, among other things, over a more than two-year period; (ii) failed to maintain effective internal controls over its financial reporting; and (iii) failed to comply with Generally Accepted Accounting Principles regarding appropriate revenue recognition practices.

If you purchased or otherwise acquired Veradigm securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.

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