DexCom (DXCM) Faces Investor Backlash After Disappointing Earnings Report - Hagens Berman
SAN FRANCISCO , Sept. 09, 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
Contact the Firm Now: DXCM@hbsslaw.com
844-916-0895
DexCom, Inc. (DXCM) Securities Class Action:
DexCom, a prominent provider of continuous glucose monitoring systems, is under intense scrutiny from investors and analysts following a dismal earnings report. The company’s stock price nosedived by 40% in a single trading session after it disclosed disappointing second-quarter growth.
Sales for the quarter fell short of analysts’ expectations, leading management to slash its full-year revenue guidance. This revision prompted analysts to significantly lower their 2025 sales estimates, casting doubt on the company’s future prospects.
The negative sentiment surrounding DexCom has been further fueled by influential financial figures. Jim Cramer, host of CNBC’s “Mad Money,” advised viewers to steer clear of the company, citing its “real bad miss” and the absence of a clear explanation for the poor results.
Securities analysts have also voiced their concerns. On August 5, Baird analyst Jeff Johnson downgraded DexCom from “Outperform” to “Neutral” and cut the price target, highlighting the company’s recent struggles.
Adding to the company’s woes, DexCom is now facing a securities class action lawsuit. The complaint alleges that the company made misleading statements and failed to disclose potential risks to its revenue outlook.
The lawsuit claims that management concealed several known issues, including a shortfall in new patients and slower-than-expected revenue growth per patient. DexCom’s management attributed these challenges to a disruptive sales force expansion, raising questions about the company’s transparency regarding its strategic challenges.
Prominent shareholder rights firm Hagens Berman has initiated an investigation into potential violations of U.S. securities laws by DexCom.
According to Reed Kathrein, the Hagens Berman partner leading the investigation, “We're focused on whether DexCom may have become aware of how its sales force changes would disrupt its competitive position and financial results.”
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
