What's Happening?
Faruqi & Faruqi, LLP, a national securities law firm, is actively investigating claims against Semler Scientific, Inc. The firm has reminded investors of the October 28, 2025 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the company. The lawsuit alleges that Semler Scientific and its executives violated federal securities laws by making false or misleading statements and failing to disclose a material investigation by the United States Department of Justice (DOJ) into potential violations of the False Claims Act. The company had previously engaged in settlement discussions with the DOJ, which were halted, leaving the risk of a DOJ-filed complaint. Following the disclosure of these issues in the company's 2024 annual report, Semler Scientific's stock fell by over 9%.
Why It's Important?
This development is significant as it highlights potential legal and financial challenges for Semler Scientific, which could impact its stock value and investor confidence. The allegations of misleading statements and undisclosed DOJ investigations could lead to substantial financial liabilities if the company is found guilty of violating the False Claims Act. Investors who suffered losses may have the opportunity to recover damages through the class action lawsuit. The outcome of this case could also set a precedent for how similar cases are handled in the future, affecting corporate transparency and accountability standards.
What's Next?
Investors have until October 28, 2025, to file for lead plaintiff status in the class action lawsuit. The court will appoint a lead plaintiff who will oversee the litigation on behalf of the class. Semler Scientific may face increased scrutiny from regulators and investors as the case progresses. The company may also need to engage in further settlement discussions with the DOJ to mitigate potential damages. Stakeholders, including shareholders and former employees, are encouraged to provide information to Faruqi & Faruqi, LLP, which could influence the case's direction.
