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The U.S. Securities and Exchange Commission said that Veradigm Inc. received a letter from the agency, dated Feb. 20, stating that it concluded its investigation and based on the information available, "does not intend to recommend an enforcement action."
Richard Poulton, former Veradigm CEO, and Leah Jones, former chief financial officer, also received letters stating that the investigation was closed, with no enforcement action taken, according to the report.
The SEC investigation began when Veradigm voluntarily disclosed errors in its financial reporting on Jan. 10, 2024. The company said it found additional revenue misstatements dating back to fiscal year 2020 and struggled with financial reporting for nearly three years.
As a result, Nasdaq suspended trading of the company's common stock on Feb. 29, 2024, according to an April 2024 SEC filing.
The company also has a history of corporate reshuffling, rebranded three years ago and considered selling, but after a search, announced it would stay the course.
"We believe Veradigm remains well-positioned to capitalize on the significant market opportunity ahead of us," Tom Langan, interim CEO, said in a statement at the time.
Don Trigg, who previously served as CEO of Apree Health, a tech company serving independent primary care practices, and as president of EHR vendor Cerner (now Oracle Health), took the helm at Veradigm last year.
The company then settled a data breach lawsuit for $10.5 million. A December 2024 cyberbreach of Veradigm's servers affected 2 million patients, according to the agreement.
Earlier this month, the company announced preliminary unaudited financials in a business and strategy update. Despite a cash-and-equivalents decrease of $174 million, primarily due to net flows from debt financing activities, it said "topline performance held steady."
"On my first investor call in October, I committed to advancing three strategic objectives in my first 100 days: reset our business strategy, recover our market leadership with independent physician practices and reignite profitable growth," Trigg said in the statement. "We have made progress on our work to 'get current and stay current' with our SEC filings."
"We closed fiscal 2025 in line with our expectations. Our topline performance held steady," said Lee Westerfield, interim CFO. "Our capital position remained strong. Revenue was approximately flat with 2024, as expected. Net cash remained positive throughout 2025, with access to additional liquidity secured."
Andrea Fox is senior editor of Healthcare IT News.
Email: afox@himss.org
Healthcare IT News is a HIMSS Media publication.
