Class Action Lawsuit Filed Against Veradigm Inc. Over Alleged Overstatement of Revenues

The lawsuit claims the company failed to maintain effective internal controls over its financial reporting, leading to significant revenue misstatements.

• Veradigm Inc. is facing a class action lawsuit filed in the United States District Court for the Northern District of Illinois on behalf of all persons and entities who purchased or otherwise acquired Veradigm common stock between February 26, 2021 and June 13, 2023.
• The lawsuit alleges that Veradigm had overstated its historical revenues by at least $20 million, had artificially inflated its revenue by recording duplicate transactions, among other things, over a more than two-year period, and had failed to maintain effective internal controls over its financial reporting.
• 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.
• On June 13, 2023, Veradigm revealed that it had identified additional revenue misstatements dating back to fiscal year 2020 and that its internal review on the nature and extent of the accounting and internal control errors would take longer than previously disclosed.
• Investors have until January 22, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

3 Articles

Benzinga Benzinga Benzinga