SAN FRANCISCO, Aug. 21, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges DexCom, Inc. (NASDAQ: DXCM) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Class Period: Jan. 8, 2024 – July 25, 2024
Lead Plaintiff Deadline: Oct. 21, 2024
Visit: www.hbsslaw.com/investor-fraud/DXCM
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844-916-0895
DexCom, Inc. (DXCM) Securities Class Action:
DexCom, a leading provider of continuous glucose monitoring systems, is in hot water with investors as the company is now the target of a securities class action. The complaint alleges that DexCom made misleading statements and failed to disclose that it did not possess reliable information to support its revenue outlook and anticipated growth, while minimizing seasonality and macroeconomic risks.
The truth allegedly emerged on July 25, 2024, when DexCom released its Q2 2024 financial results, revealing, among other disappointments, that: (1) its new patient shortfall was approximately 70,000; and (2) U.S. revenue per patient stepped down faster than expected. In addition, the company slashed its full year 2024 revenue guidance and blamed its disruptive sales force expansion.
On this news, DexCom shares cratered 40% over a single trading day.
These events have prompted prominent shareholder rights firm Hagens Berman to commence an investigation into potential violations of U.S. securities laws.
In addition to the complaint’s allegations, the firm is looking into the propriety of DexCom’s positive statements about its sales force expansion. During the class period, company management touted the sales force expansion as “help[ing] us better capitalize on the significant opportunities ahead.”
But during the Q2 2024 earnings call with securities analysts, Dexcom management seemingly changed their tune. Reacting to the company’s reduced guidance, JPMorgan analyst Robbie Marcus exclaimed, “I’m just kind of in shock at how big of a disruption and a downward guide it is on a sales force expansion[]” and “I feel like there has to be more going on.”
In response, CEO Kevin Sayer revealed that, with respect to the new patient shortage, the primary culprit was “[o]bviously, disruption on the sales force expansion side.” Sayer further revealed that: “This was a different expansion for us than the other ones. In the other ones we’ve done, we literally took territories and just divided them geographically. In this time, we changed roles. We changed positions people called on. It was a much more disruptive expansion we’ve had in the past[.]”
Hagens Berman is looking into whether DexCom may have been aware of the potential negative consequences of its sales force changes and failed to disclose this information to investors.
“We’re focused on whether DexCom may have become aware of how its sales force changes would disrupt its competitive position and financial results,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in DexCom and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the DexCom case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding DexCom should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DXCM@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
