Invested in
Veradigm?
Attention Veradigm shareholders: contact investor lawyers for a free evaluation of your potential options and claims for compensation today.
- Did you acquire shares of Veradigm (NASDAQ: MDRX), formerly known as Allscripts Healthcare Solutions, Inc., in or before February 2021, and do you still hold your Veradigm shares?
- Are you concerned about the performance of Veradigm’s stock price?
- Are you concerned about the conduct of Veradigm’s officers and directors related to Veradigm’s alleged materially false and misleading statements regarding its revenue and demand for its product and services, among others?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Posted February 2, 2024
Veradigm Class Action Investigation
Securities attorneys Alan Rosca and Paul Scarlato have been investigating potential securities violations and corporate misconduct, as well as any breach of fiduciary duty the board of directors of Veradigm owed to the investors and have identified potential areas of concern for Veradigm investors.
What Veradigm Investors May Do
MDRX investors interested in an evaluation of their potential options to seek compensation and/or pursue claims related to their Veradigm investment may contact investor rights attorneys Alan Rosca or Paul Scarlato. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct and are currently evaluating potential claims on behalf of investors in Veradigm.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned MDRX stock investors may contact attorneys Rosca or Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has Veradigm Been Accused of Misconduct?
Veradigm, Paul M. Black (former Veradigm CEO and member of Board of Directors), Richard J. Poulton (former Veradigm CFO and subsequent CEO), and Leah S. Jones (Veradigm’s CFO and principal accounting) have been subject of a class action complaint alleging violations of federal securities laws filed in the United States District Court for the Northern District of Illinois in November 2023.
According to the amended class action complaint filed on January 5, 2024, Veradigm and certain members of its senior leadership allegedly made false and misleading statements and/or failed to disclose that the company’s revenue had been overstated by at least $20 million. In addition, over a two-year period, Veradigm allegedly artificially inflated its revenue, earnings and margins, and made representations about the demand for Veradigm’s products and services. Furthermore, the complaint alleges that Veradigm’s inefficient internal controls over financial reporting and its failure to comply with the appropriate revenue recognition practices resulted in materially false and misleading financial projections, among others.
Were there Issues with Veradigm’s Financial Reporting?
In late February 2023, Veradigm filed a Form 12b-25 disclosing its inability to timely file its annual 10-K report. In the notice, Veradigm indicated that the company “identified internal control failures relating to the Company’s revenue recognition processes over the prior six quarters,” resulting in a reduction in Veradigm’s revenue of “approximately $20 million from what it otherwise reported since the third quarter of 2021 and expected to report for the fourth quarter of 2022.”
A few months later, in a press release dated June 13, 2023, Veradigm disclosed that the company expects to restate previously reported results for 2021 and 2022, which will result in a reduction of revenue from continuing operations of approximately $40 million.
What Happened to Veradigm’s Senior Officers?
According to an 8-K report dated December 6, 2023, Veradigm’s CEO Richard J. Poulton and its CFO Leah S. Jones were asked to resign by Veradigm’s Board of Directors following the investigation by the Audit Committee of the Board related to the Company’s financial reporting, internal controls over financial reporting, and disclosure controls.
The news was reportedly followed by a steep decline in MDRX price per share, from $12.59 on December 7, 2023, to $10.06 the following day, and closing at $9.51 on December 18, 2023. The MDRX stock price closed at $9.20 on February 1, 2024, which is more than 46% lower than its price one year ago, according to data by Google Finance.
Potential Compensation Claims
Do Veradigm Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato are investigating potential options and evaluating potential claims for compensation and/or other redress on behalf of Veradigm shareholders whose share value dropped following the disclosures of alleged lack of proper control over financial reporting, amongst others. The Rosca Scarlato attorneys have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Veradigm investor who has acquired MDRX shares before February 2021, are concerned about the drop in the value of your investment, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Veradigm investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Veradigm Class Action Investigation page is not affiliated with Veradigm. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
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DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.