Key Takeaways:
TruBridge Inc. is under investigation by Rosen Law Firm after revealing accounting errors that will force it to restate nearly three years of financial results.
"The Company’s management identified errors in the Company’s previously issued consolidated financial statements," TruBridge stated in a Notification of Late Filing on March 17, 2026.
The errors relate to revenue recognition, stock-based compensation, and capitalized software development for fiscal years 2023 and 2024, as well as the first three quarters of 2025. On the news, TruBridge’s stock price fell $1.84 per share, or 10.5 percent, to close at $15.75.
The investigation and potential class-action lawsuit expose TruBridge to significant legal costs and reputational damage, while the restatement creates uncertainty around the company's true financial health for investors.
In a Form 12b-25 filing with the SEC, TruBridge disclosed its inability to file its annual report for the fiscal year ended December 31, 2025, on time. The company cited the discovery of "out-of-period errors" that require it to make revisions to previously issued consolidated financial statements.
The specific issues identified involve the timing of revenue recognition and related contract costs, stock-based compensation expenses, and costs related to capitalized software development. As a result, financial reports for the years ended December 31, 2024, and December 31, 2023, as well as quarterly reports for 2025, are now considered unreliable.
Rosen Law Firm, a global investor rights firm, announced it is preparing a class-action lawsuit to recover investor losses. The firm is encouraging investors who purchased TruBridge securities to contact them.
The need to restate multiple years of financial data raises questions about the company's internal controls and oversight. The stock's sharp decline reflects investor concern over the extent of the errors and the potential for further negative disclosures. Investors will now await the filing of the corrected annual report for clarity on the company's financial standing.
This article is for informational purposes only and does not constitute investment advice.
