Cardionet Inc under Investor Investigation over possible Violations of Securities Laws

Sept. 14, 2011 - PRLog -- An investigation on behalf of investors in shares of Cardionet Inc  over possible Violations of Federal Securities Laws was announced.

If you purchased shares of Cardionet Inc , you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on possible Cardionet shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns certain statements regarding Cardionet’ business, its prospects and its operations were materially false and misleading at the time they were made.

Even though Cardionet’s annual Total Revenue rose from $72.99million for 07 to $119.92million in 2010, its 12months Revenue fell from $140.62million in 09 to $119.92million in 2010. Additionally its Net Loss increased from a Net Loss of $0.36million in 2007, respectively a Net Income of $9.21million, to a Net Loss of $19.86million in 2010. Its second quarter Revenue for 2011 decreased only slightly compared to last year second quarter Revenue, however its second quarter Net Loss increased from $2.14million last year to $3.01million Net Loss for the second quarter in 2011.

Shares of Cardionet Inc (Public, NASDAQ-BEAT) traded as high as $35.40 in August ‘08 and $28.32 in March 09.

Shares of Cardionet Inc (Public, NASDAQ-BEAT) fell from over $5 during May, June, and  July 2011 to $3.46 on August 10, 2011 after Cardionet Inc  reported its second quarter 2011 financial results. Then on August 30, 2011 after the market closed, CardioNet disclosed in a filing with the SEC that on August 25, 2011 the Company had received a Civil Investigative Demand (“CID”) issued by the U.S. Department of Justice (“DOJ”), Western District of Washington. On August 31, 2011, CardoNet’s common stock  declined by $0.55 per share, about 14.6%, in midday trading to about $3.22 per share.
According to the SEC filing, the CID states that it was issued in the course of an investigation under the federal false claims act and seeks documents going back to January 1, 2007. According to CardioNet, the investigation concerns “allegations that the Company may have used inappropriate diagnosis codes when submitting claims for payment to Medicare for its real-time, outpatient cardiac monitoring services.”

NASDAQ- BEAT stocks closed on Friday September 2, 2011 at $3.14 per share.

Those who purchased shares of Cardionet Inc , have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.