The investigation focuses on the accuracy of Veradigm’s revenue recognition practices.

On February 28, 2023, Veradigm announced that it would not be filing its fourth quarter 2022 results and annual report 2022 on time, alleging that the company had discovered errors in revenue reporting triggered by a software tool that resulted in that the company reported inflated numbers for the last six quarters. According to Veradigm, the errors resulted in an estimated revenue reduction of approximately $20 million from what it reported in Q3 2021 to what it expects to report in Q4 2022. The revenue recognition failures further prompted the company to lower its 2023 revenue guidance and adjust its EPS guidance.

Then, on March 22, 2023, Veradigm further reduced its 2023 revenue guidance and announced that it would require additional time to file its 2022 annual report. The company said its ongoing internal audit has been expanded in terms of transaction testing and timeframes. As a result of the expanded review process, the company revealed that the estimated inflated revenue is now double the previously announced amount, or approximately $40 million. The company also noted that it would need to restate its full-year 2021 financial results.

These events caused the Veradigm share price to fall sharply.

“We are focused on investors’ losses and determining the true cause of Veradigm’s accounting errors,” said Reed Kathrein, the partner at Hagens Berman who led the investigation.

If you have invested in Veradigm and are experiencing significant losses or have knowledge that could assist the firm’s investigations, Click here to discuss your legal rights with Hagens Berman.

Whistleblower: Those with non-public information about Veradigm should consider their options to assist in the investigation or take advantage of the SEC…