What is the story about?
What's Happening?
Robbins LLP, a law firm specializing in shareholder rights, has announced a class action lawsuit on behalf of individuals and entities that acquired Semler Scientific, Inc. securities between March 10, 2021, and April 15, 2025. The lawsuit alleges that Semler Scientific failed to disclose a significant investigation by the U.S. Department of Justice (DOJ) into potential violations of the False Claims Act. The company is accused of marketing tests on devices using photoplethysmography technology as reimbursable by Medicare, which may contravene applicable laws. The DOJ's investigation began with a civil investigative demand in July 2017, and subsequent demands followed. Semler Scientific attempted to settle with the DOJ in February 2025 but was unsuccessful, leading to a significant drop in its stock price. The company later agreed to a $29.75 million settlement with the DOJ, excluding attorney fees, which further impacted its stock value.
Why It's Important?
This legal action is significant as it highlights the potential financial and reputational risks companies face when failing to disclose material investigations. For Semler Scientific, the lawsuit and settlement with the DOJ have already resulted in a notable decline in stock value, affecting shareholders. The case underscores the importance of transparency and compliance with federal regulations, particularly in the healthcare sector where regulatory scrutiny is intense. Shareholders stand to gain from potential recoveries if the class action is successful, while the company may face further financial liabilities and reputational damage.
What's Next?
Shareholders interested in participating in the class action must submit their paperwork by October 28, 2025, to be considered for the lead plaintiff role. The lead plaintiff will represent the class in directing the litigation. Semler Scientific may face additional legal challenges if the DOJ decides to pursue further action. The outcome of this case could influence corporate governance practices and compliance strategies within the industry, as companies may seek to avoid similar legal entanglements.
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