Healthcare technology company Veradigm is facing a class action lawsuit from investors alleging that the company and its top executives have been misreporting financial conditions to their shareholders.
The lawsuit accuses Veradigm of violating federal securities laws. It accuses Veradigm of overstating historical revenues by at least $20 million and artificially inflating earnings and margins by allegedly recording duplicate transactions over two years.
The complaint further alleges that Veradigm failed to maintain effective internal controls over its financial reporting and did not comply with generally accepted accounting principles regarding appropriate revenue recognition practices.
The plaintiffs seek to expand the lawsuit to include a class of all purchasers of Veradigm common stock between February 2021, and June 2023. The case follows Veradigm's press release on Feb. 28, 2023, which allegedly acknowledged internal control failures related to revenue recognition that resulted in misstated reported revenues over six quarters.
Plaintiffs are represented in the action by attorneys Brian E. Cochran and Samuel H. Rudman, of Robbins Geller Rudman & Dowd, of Melville, New York, and Michael I. Fistel Jr., of Johnson Fistel LLP, of Marietta, Georgia.