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Bragar Eagel & Squire, P.C. Is Investigating Veradigm, Techtronics, Marathon, and Nutanix and Encourages Investors to Contact the Firm
Globe Newswire 17-Mar-2023 9:00 PM
NEW YORK, March 17, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Veradigm Inc. (NASDAQ:MDRX), Techtronic Industries Company Limited (OTC:TTNDY), Marathon Digital Holdings, Inc. (NASDAQ:MARA), and Nutanix, Inc. (NASDAQ:NTNX). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
On February 28, 2023, Veradigm disclosed that it "detected certain internal control failures related to revenue recognition that have occurred over the prior six quarters, resulting in a mis-statement to reported revenues during those periods." As a result, the Company reported that it expects "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 is "continuing to evaluate the materiality of the mis-statement 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.
On this news, Veradigm's stock price fell $2.12 per share, or 12.76%, to close at $14.49 per share on March 1, 2023.
Hong Kong power tool maker Techtronics has gained U.S.-based investors' attention by reporting improved gross profit margin every half-year, sequentially, for ten years straight - a feat no other public company with over $1 billion revenue in the entire world can claim.
Techtronics' earnings recently came into question on Feb. 22, 2023, when Jehoshaphat Research published a report alleging that the company has been "inflating its profits dramatically for over a decade with manipulative accounting."
Specifically, Jehoshaphat Research accuses the company of deceptively managing costs "[b]y stuffing billions of dollars' worth of routine expenses into various asset accounts, year after year;" an accounting trick referred to as "snowballing."
Jehoshaphat Research observes that every year, TTI disposes of large amounts of tangible assets, such as Property, Plant & Equipment, at near-total losses on sale - signifying the company is capitalizing routine business expenses into assets.
The report also accused the company of ignoring its own accounting policy on bad debt provisions to delay expenses.
On this news, Techtronics' share price declined sharply.
On February 28, 2023, Marathon issued a press release "announc[ing] . . . that it has cancelled its webcast and conference call for the fourth quarter and fiscal year 2022, initially scheduled for today, February 28, 2023, at 4:30 p.m. Eastern time, and will postpone the publication of its corresponding financial results." That same day, Marathon disclosed receipt of a letter from the U.S. Securities and Exchange Commission relating to accounting errors in the Company's previously issued financial statements. The Company advised investors that the "statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and the previously issued unaudited condensed consolidated financial statements for the interim periods in 2022 and 2021 as contained in the Company's Quarterly Reports on Form 10-Q for the fiscal periods ended March 31, 2021 and 2022, June 30, 2021 and 2022 and September 30, 2021 and 2022 . . . should no longer be relied upon" and will be restated.
On this news, Marathon's stock price fell $0.59 per share, or 8.31%, to close at $6.51 per share on March 1, 2023.
On March 6, 2023, Nutanix issued a press release reporting selected preliminary second quarter fiscal 2023 financial results. Among other items, Nutanix reported that "Company management discovered that certain evaluation software from one of its third-party providers was instead used for interoperability testing, validation and customer proofs of concept over a multi-year period." Due to an ongoing Audit Committee investigation into the matter, Nutanix stated that "it does not expect to be able to [timely] file its Quarterly Report on Form 10-Q for the quarter ended January 31, 2023[.]"
On this news, Nutanix's stock price fell $2.27 per share, or 7.89%, to close at $26.50 per share on March 7, 2023.
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
