DexCom (DXCM) Blamed Disruptive Sales Force Changes For Its Disappointing Q2 2024 Results And ...

SAN FRANCISCO, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges DexCom, Inc. (NASDAQ: DXCM) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

On July 26, 2024, the price of DexCom shares cratered $43.85 (-40%) after the company blamed disappointing Q2 2024 financial results and outlook on its disruptive sales force changes. Unsurprisingly, analyst downgrades followed.

Class Period: Jan. 8, 2024 – July 25, 2024 Lead Plaintiff Deadline: Oct. 21, 2024 Visit: www.hbsslaw.com/investor-fraud/DXCM Contact the Firm Now: DXCM@hbsslaw.com 844-916-0895

DexCom, Inc. (DXCM) Securities Class Action:

DexCom, a leading provider of continuous glucose monitoring systems, is under intense scrutiny from investors and analysts following a disappointing earnings report. The company’s quarterly sales fell short of analysts’ expectations, prompting management to slash its full-year revenue guidance. This revision has led analysts to significantly lower their 2025 sales estimates, casting doubt on DexCom’s future prospects.

The negative sentiment surrounding DexCom has been further fueled by influential financial figures. Jim Cramer, host of CNBC’s “Mad Money,” advised viewers to steer clear of the company, citing its “real bad miss” and the absence of a clear explanation for the poor results.

Securities analysts have also voiced their concerns. J.P. Morgan analyst Robbie Marcus downgraded DexCom shares from overweight to neutral and slashed the price target from $145 to $75, stating, “There’s no getting away from the fact that this Thursday’s update was a sharp turn in the wrong direction for DexCom.” Similarly, Baird analyst Jeff Johnson downgraded DexCom from “Outperform” to “Neutral” and cut the price target in half to $80, highlighting the company’s recent struggles.

Adding to the company’s woes, DexCom is now facing a securities class action lawsuit. The complaint alleges that the company made misleading statements and failed to disclose potential risks to its revenue outlook. The lawsuit claims that management concealed several known issues, including a shortfall in new patients and slower-than-expected revenue growth per patient. DexCom’s management attributed these challenges to a disruptive sales force expansion, raising questions about the company’s transparency regarding its strategic challenges.

Prominent shareholder rights firm Hagens Berman has initiated an investigation into potential violations of U.S. securities laws by DexCom.

According to Reed Kathrein, the Hagens Berman partner leading the investigation, “We're focused on whether DexCom may have become aware of how its sales force changes would disrupt its competitive position and financial results.”

If you invested in DexCom and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the DexCom case and our investigation, read more»

Whistleblowers: Persons with non-public information regarding DexCom should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email DXCM@hbsslaw.com.

About Hagens Berman Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at  hbsslaw.com. Follow the firm for updates and news at  @ClassActionLaw. 

Contact:

Reed Kathrein, 844-916-0895