Dive Brief:
- Veradigm has removed its chief executive and chief financial officers as the Chicago-based health IT company struggles to complete financial reporting requirements that could lead to delisting from Nasdaq.
- The company, formerly known as Allscripts, asked for and received the resignations of CEO Richard Poulton and CFO Leah Jones, according to a Friday announcement.
- The company’s current director, Shih-Yin Ho, will take over as interim CEO. Lee Westerfield will serve as interim CFO as Veradigm searches for permanent replacements.
Dive Insight:
The executive shakeup comes amid an independent investigation conducted by legal counsel into Veradigm’s financial reporting and disclosure controls. The company failed to file its annual report for 2022 as well as quarterly reports for the first, second and third quarters this year.
Veradigm received notice in September that its shares would be delisted from Nasdaq, but the company appealed the decision. A hearing before the Nasdaq Hearings Panel was held in November, according to a recent filing with the Securities and Exchange Commission.
The company’s board of directors also appointed current chairman Greg Garrison as executive chairman.
“Veradigm’s core business remains strong but, after careful review and consideration, it is clear that we must develop a stronger financial control environment with enhanced financial reporting policies and disclosure policies and procedures, and the leadership changes announced today reflect the importance of accountability in achieving that goal,” Garrison said in a statement.
Ho worked as president of pharmaceutical software and strategy consultancy Glimpse since 2018, according to a filing with the SEC. She also served as chief strategy officer and chief product officer of real-world evidence software company Aetion, and co-founded a clinical trial workforce company in 2021.
Westerfield most recently served as CFO of healthcare data and analytics firm Clearsense.
The new leadership team is reviewing 2023 guidance it provided in September, and the company is committed to regaining compliance with the listing rule “as soon as possible,” Veradigm said in the Friday announcement.
