Kaskela Law LLC is investigating potential breach of fiduciary duty claims concerning DexCom, Inc. (“Dexcom”) on behalf of the company’s long-term shareholders.

Recently a securities fraud complaint was filed against Dexcom on behalf of certain investors who purchased shares of the company’s stock between April 28, 2023 and July 25, 2024 (the “Relevant Period”).  According to the complaint, during the Relevant Period, Dexcom and several of the company’s senior executive officers made a series of materially false and misleading statements and/or failed to disclose that Dexcom’s optimistic reports of growth, earnings potential, and anticipated margins fell far short of reality as the Company relied far too heavily on its ability to attract new customers while keeping existing distribution channels afloat.

Further according to the complaint, the truth emerged on July 25, 2024, when Dexcom “shocked the market by slashing its full-year revenue guidance by a staggering $300 million, largely attributing the miss to its profound underperformance in the Type 2 basal market and admitting it had ‘lost market share in the [durable medical equipment] channel’ which was directly tied to basal underperformance.” Following this news, shares of the Company’s common stock fell $43.85 per share, or over 40% in value, to close at $64.00 per share on July 26, 2024, on unusually heavy trading volume.

The investigation seeks to determine whether the members of Dexcom’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

Current Dexcom shareholders who have owned the company’s shares since at least April 28, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) for additional information about this investigation and their legal rights and options at (484) 229 – 0750, or by completing the form on this page.