The complaint charges CardioNet and certain of its officers and directors with violations of the Securities Exchange Act of 1934. CardioNet is the leading provider of ambulatory, continuous, real-time outpatient management solutions for the monitoring of clinical information on an individual's health.
During the Class Period, defendants made positive statements about the Company's revenues and earnings knowingly or recklessly disregarded that it was currently experiencing reductions in its reimbursement rates for its MCOT services and that these reimbursement rates were under review by payors, and a reduction in rates could result in the Company's current independent business model not being economically viable. Defendants' financial outlook for 2009, 2010 and 2011 had no reasonable basis in fact because it was based on the current $1,123.07 rate for the MCOT system, which rate Defendants knew was under review by payors and which was likely to be reduced because of, inter alia, the cost-driven reimbursement environment which was driving down virtually all reimbursement levels set by commercial providers.
On September 21, 2009, the Honorable Stewart Dalzell consolidated two civil actions under Civil Action No. 09-3894. On December 22, 2009, Judge Dalzell signed the order granting in part the motion of the Central Laborers' Pension Welfare
and Annuity Funds for appointment as lead plaintiff and approval of its selection of counsel as co-lead counsel for the class. According to the Order, Central Laborers is appointed lead plaintiff and the Central Laborers shall file an amended motion for approval of its selection of class counsel with the supporting documentation. The case has been transferred to the civil suspense docket pending the appointment of class counsel.
On February 3, 2010, Judge Stewart Dalzell signed the Order appointing Barrack, Rodos & Bacine and Branstetter, Stranch & Jennings, PLLC, as co-lead counsel for the putative class in this consolidated case. On February 19, 2010, the lead plaintiff filed a Consolidated Class Action Complaint. On March 26, 2010, the defendants filed a motion to dismiss the Consolidated Class Action Complaint, and on August 10, 2010, Judge Dalzell granted the defendants' motion to dismiss. Judgment was entered in favor of the defendants, and the case is now closed.