DexCom, Inc. (DXCM) Class Action

On July 26, 2024, the price of DexCom shares cratered $43.85 (-40%) after the company held its Q2 2024 earnings call the day before.

The investigation focuses on the propriety of DexCom’s disclosures about its sales force expansion which, just a few months ago, company management touted as “help[ing] us better capitalize on the significant opportunities ahead.”

The company revealed, among other disappointments, that: (1) its new patient shortfall was approximately 70,000; and (2) U.S. revenue per patient stepped down faster than expected. In addition, the company slashed its full year 2024 revenue guidance and blamed its disruptive sales force expansion.

During the earnings call, JPMorgan analyst Robbie Marcus said, “I’m just kind of in shock at how big of a disruption and a downward guide it is on a sales force expansion[]” and “I feel like there has to be more going on.” 

In response, CEO Kevin Sayer revealed that, with respect to the new patient shortage, the primary culprit was “[o]bviously, disruption on the sales force expansion side.” Sayer further revealed that: “This was a different expansion for us than the other ones. In the other ones we’ve done, we literally took territories and just divided them geographically. In this time, we changed roles. We changed positions people called on. It was a much more disruptive expansion we’ve had in the past[.]”

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the DXCM investigation about?

We are investigating whether DexCom may have become aware of how its sales force changes would disrupt its competitive position and financial results.

WHAT SHOULD I DO?

I worked at DXCM. What should I do?

If you were an employee of DXCM, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in DXCM, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any DXCM investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.