Berman Tabacco is sole Lead Counsel representing sole lead plaintiff Alameda County Employees’ Retirement Association in a securities fraud class action lawsuit against Veradigm Inc. and certain of its executive officers (“Veradigm Defendants”) on behalf of all persons and entities who purchased or otherwise acquired Veradigm common stock during the period May 8, 2020 to [February] 26, 2024, inclusive (the “Class Period”). Veradigm is a healthcare technology company that offers electronic health records, financial management, population health management, and consumer solutions to hundreds of thousands of healthcare providers. The case, which was brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as SEC Rule 10b-5, alleges that the company made materially false and misleading statements during the Class Period regarding its revenues, gross margins, and earnings growth. More specifically, Plaintiffs allege that Veradigm (a) failed to maintain effective internal controls over its financial reporting; (b) overstated its historical revenues; (c) artificially inflated its revenue by recording duplicate transactions, among other things, over a more-than-two-year period; (d) artificially inflated its earnings and margins and materially misrepresented demand for the company’s products and services during the Class Period; and (e) failed to comply with Generally Accepted Accounting Principles (“GAAP”), including with regard to appropriate revenue recognition practices; and that as a result of the foregoing, the Company’s financial projections were materially false and misleading and lacked any reasonable basis. On February 29, 2024, Veradigm was delisted by NASDAQ after failing to cure identified issues by that NASDAQ-imposed deadline. Despite first identifying the issue in February 2023, the company only restated its 2022 SEC Form 10-K over two years later in March 2025, and only filed its belated 2023 and 2024 SEC Form 10-Ks in May 2026. The company’s 2025 annual report remains outstanding, and Veradigm’s common stock continues to trade on the over-the-counter markets rather than a national exchange.
The amended and consolidated complaint was filed on April 30, 2025. On August 18, 2026, the Court denied the Veradigm Defendants’ motion to dismiss in large part, sustaining all claims against Veradigm, former CEO Paul M. Black, and President and CEO Richard J. Poulton. The case is now proceeding with discovery.