A Medical Device Daily
Coughlin Stoia Geller Rudman & Robbins LLP reported that a class action has been commenced in the U.S. District Court for the Eastern District of Pennsylvania on behalf of purchasers of CardioNet (Conshohocken, Pennsylvania) common stock during the period between April 30, 2009 and July 10, 2009.
The complaint charges CardioNet and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that during the class period, defendants issued materially false and misleading statements concerning the company's Mobile Cardiac Outpatient Telemetry (MCO) device, including making aggressive projections for 2009 through 2011. Defendants further downplayed the potential for Pennsylvania's Medicare carrier, Highmark Medicare Services, to reduce its reimbursement rate for the company's MCOT device. As a result of defendants' false and misleading statements, CardioNet stock traded at artificially inflated prices during the class period, reaching a high of $19.60 per share on May 19, 2009.