RADNOR, Pa.–(BUSINESS WIRE)–#classaction–The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois against Veradigm Inc. (“Veradigm”) (NASDAQ: MDRX). The action charges Veradigm with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Veradigm’s materially misleading statements and omissions to the public, Veradigm’s investors have suffered significant losses.
CLICK HERE TO SUBMIT YOUR VERADIGM LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/veradigm-inc?utm_source=PR&utm_medium=link&utm_campaign=mdrk&mktm=r
LEAD PLAINTIFF DEADLINE: JANUARY 22, 2024
CLASS PERIOD: FEBRUARY 26, 2021 THROUGH DECEMBER 7, 2023
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
DEFENDANTS’ ALLEGED MISCONDUCT
The Class Period begins on February 26, 2021. On the prior day, Veradigm issued a press release announcing its fourth quarter and full-year 2020 financial results. That same day, Veradigm hosted an earnings call led by certain defendants wherein they touted the company’s financial performance. 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.
The truth began to be revealed on February 28, 2023, when Veradigm disclosed that the company had “detected certain internal control failures related to revenue recognition that have occurred over the prior six quarters, resulting in a mis-statement to reported revenues during those periods.” As a result, Veradigm reported, among other things, that it would not be filing its 2022 annual report on time. Following this news, the price of Veradigm common stock declined $2.12 per share, or nearly 13%, from a close of $16.61 per share on February 28, 2023, to close at $14.49 per share on March 1, 2023.
Then on March 22, 2023, Veradigm announced that the size and scope of the revenue misstatements were significantly greater than previously disclosed, revealing that revenues had been overstated by approximately $40 million and that quarterly filings in fiscal years 2021 and 2022 could no longer be relied upon, and would need to be restated. Moreover, Veradigm revealed that the company would “report one or more material weaknesses . . . related to the recognition of revenue and certain other non-routine review controls.” Finally, Veradigm disclosed that it was lowering its previously disclosed fiscal year 2023 revenue guidance range by another $10 million. Following this news, Veradigm’s stock price fell $0.39, or 2.9%, to close at $12.98 per share on March 22, 2023.
On June 13, 2023, Veradigm announced that it had identified additional revenue misstatements dating back to fiscal year 2020 and that an internal review on the nature and extent of the accounting and internal control errors would take longer than previously disclosed. As a result, Veradigm revealed that the company would not meet the deadline to file its fiscal 2022 annual report with the SEC. Following this news, the price of Veradigm common stock declined $0.53 per share, or more than 4.4%, from a close of $12.02 per share on June 13, 2023, to close at $11.49 per share on June 14, 2023.
Finally, on December 8, 2023, Veradigm announced that both its CEO and CFO had been forced to resign at the request of the Board of Directors. Following this news, the price of Veradigm stock fell more than 20%, to close at $10.07 on December 8, 2023.
WHAT CAN I DO?
Veradigm investors may, no later than January 22, 2024, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Veradigm investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Veradigm, Erwin v. Veradigm Inc., et al., Case No. 23-cv-16205, is filed in the United States District Court for the Northern District of Illinois.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.