On February 28, 2023, Veradigm disclosed that it had “detected certain internal control failures related to revenue recognition” from the prior six quarters and further stated that these failures had “result[ed] in a mis-statement to reported revenues during those periods.” As a result, Veradigm expected “a reduction in revenue from continuing operations of approximately $20 million dollars in the aggregate from what it otherwise reported since the 3rd quarter of 2021 and expected to report for the 4th quarter of 2022.” The Company added that it would continue to evaluate the effects of the misstatement “to determine if the full amount of this adjustment will flow through in the 4th quarter of 2022 or if prior periods will also require adjustment.” As a result, Veradigm revised its 2023 guidance downward and announced that it would not be filing its 2022 annual report on time.

Following this news, Veradigm’s stock price fell 12.76%, to close at $14.49 per share on March 1, 2023.