Pomerantz Law Firm Announces the Filing of a Class Action Against DexCom, Inc. and Certain Officers

Core Viewpoint - A class action lawsuit has been filed against DexCom, Inc. and certain officers for alleged violations of federal securities laws during the Class Period from July 26, 2024, to September 17, 2025, seeking damages for misleading statements regarding the company's products and operations [1][5]. Company Overview - DexCom is a medical device company focused on continuous glucose monitoring (CGM) systems for diabetes management, with key products including the Dexcom G6 and G7 systems launched in 2018 and 2023, respectively [4]. Allegations and Misleading Statements - The lawsuit alleges that DexCom made materially false and misleading statements about the G6 and G7 systems, including unauthorized design changes that compromised their reliability and safety, leading to increased health risks for users [5]. - Specific allegations include overstated claims about the G7's accuracy and functionality, downplaying the severity of issues with the devices, and failing to disclose the risk of regulatory scrutiny and potential legal repercussions [5]. Regulatory Issues - On March 7, 2025, DexCom received a warning letter from the FDA regarding manufacturing and quality management concerns, which led to a significant drop in stock price [6]. - The FDA later published the warning letter, confirming that the G6 and G7 products were "adulterated" due to modifications made without prior approval, resulting in larger inaccuracies and increased risks for users [7]. Market Reactions - Following the FDA's warning and subsequent reports of issues with the G7, DexCom's stock experienced notable declines, including a drop of $7.12 per share (9.15%) on March 10, 2025, and further declines after Oppenheimer downgraded the stock rating due to concerns about the G7's performance [6][8][9]. - A report by Hunterbrook highlighted severe health risks associated with the G7, linking inaccuracies to hospitalizations and fatalities, which further impacted DexCom's stock price, resulting in a drop of $8.99 per share (11.76%) [10][11].