DexCom (DXCM) is accused of misleading investors

SAN FRANCISCO, Aug. 21, 2024 (GLOBE NEWSWIRE) — Hagens Berman calls on DexCom, Inc. (NASDAQ: DXCM) Investors who have suffered significant losses are asked to report their losses now. The company also urges anyone with knowledge who may be able to assist in the investigation to contact its attorneys.

Lesson: January 8, 2024 – July 25, 2024
Deadline for lead plaintiffs: October 21, 2024
Visit: www.hbsslaw.com/investor-fraud/DXCM
Contact the company now: [email protected]
844-916-0895

DexCom, Inc. (DXCM) Securities Class Action Lawsuit:

DexCom, a leading provider of continuous glucose monitoring systems, has become embarrassed by investors as the company is now the target of a class action lawsuit. The suit alleges that DexCom made misleading statements and failed to disclose that it did not have reliable information to support its revenue forecast and expected growth, while downplaying seasonality and macroeconomic risks.

The truth allegedly came to light on July 25, 2024, when DexCom released its financial results for the second quarter of 2024. Among other things, it revealed that: (1) the shortage of new patients was approximately 70,000; and (2) revenue per patient in the US was declining faster than expected. In addition, the company cut its full-year 2024 revenue forecast, blaming the disruptive expansion of its sales team.

Following this news, DexCom shares fell 40% in a single trading day.

These events have prompted the renowned shareholder rights firm Hagens Berman to launch an investigation into possible violations of U.S. securities laws.

In addition to the allegations in the complaint, the Company is reviewing the adequacy of DexCom's positive statements about the expansion of its sales force. During the complaint period, Company management touted the expansion of the sales force as “help[ing] us to better exploit the great opportunities ahead.”

But during the conference call with securities analysts on the second quarter of 2024, Dexcom management apparently changed its mind. In response to the company's reduced forecast, JPMorgan analyst Robbie Marcus exclaimed: “I'm just shocked at the level of disruption and the downside guidance for the expansion of the sales team.[]“ and “I feel like more needs to happen.”

In response, CEO Kevin Sayer stated that the main culprit for the lack of new patients was: “[o]obviously disruptions in the expansion of the sales team.” Sayer further revealed, “This was a different expansion for us than the others. The others we've done, we literally took territories and just split them up geographically. During this time, we changed roles. We changed positions that people were calling. It was a much more disruptive expansion than we've had in the past.[.]”

Hagens Berman is investigating whether DexCom was aware of the potential negative consequences of its sales team changes and failed to communicate this information to investors.

“We are focused on whether DexCom may have been aware of how the changes to its sales team would negatively impact its competitive position and financial results,” said Reed Kathrein, lead partner at Hagens Berman, who led the investigation.

If you have invested in DexCom and suffered significant losses or have knowledge that could help the company's investigation, report your losses now »

If you would like more information and answers to frequently asked questions about the DexCom case and our investigation, read on »

Whistleblower: Individuals with nonpublic information about DexCom should explore their options to assist in the investigation or use the SEC Whistleblower Program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent of any successful SEC recovery. For more information, contact Reed Kathrein at 844-916-0895 or send an email to [email protected].

About Hagens Berman
Hagens Berman is a global complex plaintiffs' rights litigation firm with a focus on corporate responsibility. The firm has a robust practice representing investors as well as whistleblowers, employees, consumers and others in cases that achieve real results for those harmed by corporate negligence and other wrongdoing. Hagens Berman's team has won more than $2.9 billion in this area of ​​law. For more information about the firm and its successes, visit hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895