NEW YORK, Nov. 27, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased or otherwise acquired Veradigm, Inc. (“Veradigm” or the “Company”) (NASDAQ: MDRX) securities between February 26, 2021 and June 13, 2023, inclusive (the “Class Period”).
The Complaint alleges that Defendants failed to disclose to investors that: (i) the Company had overstated its historical revenues by at least $20 million; (ii) the Company had artificially inflated its revenue by recording duplicate transactions, among other things, over a more than two-year period; (iii) the Company had artificially inflated its earnings and margins and materially misrepresented demand for the Company’s products and services; (iv) the Company had failed to maintain effective internal controls over its financial reporting; and (v) the Company had failed to comply with Generally Accepted Accounting Principles regarding appropriate revenue recognition practices.
The Complaint further alleges that on February 28, 2023, the Company 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.” Additionally, the Complaint alleges that the Company 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 the Company stock fell nearly 13%.
Investors who purchased or otherwise acquired shares of Veradigm should contact the Firm prior to the January 22, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
