| COMPANY |
DexCom, Inc. |
| COURT |
United States District Court for the Southern District of California |
| CASE NUMBER |
24-cv-01485 |
| JUDGE |
The Hon. Robert Steven Huie |
| CLASS PERIOD |
January 8, 2024 through July 25, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS OCTOBER 21, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Class Background:
The Class Period begins on January 8, 2024, when DexCom gave revenue outlook to investors which included record growth of approximately 16% to 21% over 2023.
Throughout the Class Period, on earnings and shareholder calls, Defendants continually praised their alleged growth, foreseeing record numbers of new patients and outpacing their prior fiscal year’s gross margins, while continually minimizing the risks associated with scaling their customer transition to the G7 platform, as well as those associated with seasonality and the potential impact of the macroeconomic environment on the company’s profitability.
Then, on July 25, 2024, after the market closed, DexCom shocked the market when it announced disappointing earnings results for its second quarter of 2024 and slashed full year revenue guidance from $4.35 billion to $4 billion-$4.05 billion. In addressing the results, DexCom stated that the company’s “execution did not meet [its] high standards,” and that DexCom lowered its full year 2024 guidance due to “certain unique items impacting 2024 seasonality.”
On this news, DexCom’s stock price fell from a closing price of $107.85 per share on July 25, 2024, to $64.00 per share on July 26, 2024, a decline of about 40.66% in the span of just a single day.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) DexCom’s communications about growth and anticipated margins were unreasonably optimistic due to its reliance on attracting new customers; (2) DexCom was struggling to keep existing distribution channels successful; and (3) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.