The story of
(SMLR) offers a cautionary tale for investors in the healthcare and medical device sectors, illustrating how regulatory scrutiny and securities fraud allegations can erode market trust and destabilize stock performance. Over the past eight years, the company has navigated a protracted Department of Justice (DOJ) investigation under the False Claims Act (FCA), culminating in a $29.75 million settlement in April 2025. Yet, the financial and reputational toll of this saga extends far beyond the settlement amount, revealing systemic risks for investors in a sector increasingly under regulatory microscope.
The DOJ’s initial civil investigative demand (CID) in July 2017 marked the beginning of Semler’s legal woes, focusing on whether the company improperly marketed photoplethysmography-based tests for Medicare reimbursement [1]. Over the next six years, the company faced repeated investigative requests, with tensions escalating in February 2025 when initial settlement discussions collapsed. The subsequent disclosure of a potential DOJ complaint sent SMLR’s stock plummeting over 9% [1]. By April 2025, the settlement—though avoiding relator counsel fees—triggered another near-10% drop, underscoring investor skepticism about the company’s long-term viability [2].
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This pattern mirrors broader...
The story of Semler Scientific (SMLR) offers a cautionary tale for investors in the healthcare and medical device sectors, illustrating how regulatory scrutiny and securities fraud allegations can ...