Dive Brief:
- Veradigm isn’t facing enforcement action from the Securities and Exchange Commission after the health IT company failed to comply with financial reporting requirements.
- Veradigm received a letter from the SEC last week saying it had concluded its investigation and doesn’t plan on recommending any enforcement action, the company said in a Tuesday securities filing. Richard Poulton and Leah Jones, Veradigm’s former CEO and CFO who both resigned in December 2023, received similar letters, according to the filing.
- The SEC investigation began after Veradigm failed to file timely financial reports with regulators for several quarters, which led to the health IT company being delisted from the Nasdaq in early 2024.
Dive Insight:
Veradigm’s delisting came after the company failed to report quarterly or annual earnings results with regulators since November 2022, a lapse the company attributed to “internal control failures.” The SEC investigation was triggered when Veradigm disclosed an inquiry by its board’s audit committee into its financial reporting and internal controls.
The company has since made some progress on its financial reporting. In March last year, Veradigm issued its full year results for 2022, as well as several restated filings. The company has also released other business updates and held calls with investors over the past year.
During a call last week, Veradigm management said the company would next release its annual reports for 2023 and 2024. The health IT firm plans to become current on its filings this year, and apply to relist shortly after, CEO Don Trigg said.
Veradigm is also working on a turnaround program to reset the health IT firm’s business strategy, recover its market position with independent physician practices and spur profitable growth, Trigg said.
Veradigm offers a range of tools for healthcare and life sciences companies, including analytics products, practice management software, an ambulatory electronic health record and revenue cycle management tools.
The company eliminated 15% of its workforce last year, closed offices and cut “low revenue” products, management said on the call.
The SEC declined to comment on the agency's decision to not recommend an enforcement action. Veradigm didn’t respond to a request for comment by press time.
