Court: N.D. California

Case: 5:25-cv-07303

• investors filed a claim against Semler Scientific for concealing a multi-year DOJ investigation into alleged False Claims Act violations, while publicly downplaying such risks in filings and statements.
• After disclosing settlement talks with the DOJ on February 28, 2025, and later confirming an agreement in principle on April 15, 2025, fell a combined 18.6%, including 9.38% on March 3 and 9.88% on April 16.

Case Details:

Between March 10, 2021, and April 15, 2025, Semler Scientific repeatedly warned investors about potential government scrutiny under the False Claims Act, but framed such risks as hypothetical. In reality, since 2017, the DOJ had been investigating Semler’s QuantaFlo device reimbursements under Medicare. The company received multiple civil investigative demands (CIDs) between 2017 and 2023 but failed to disclose them while continuing to certify compliance and financial accuracy.

The truth began to emerge on February 28, 2025, when Semler disclosed for the first time that it was in settlement talks with the DOJ regarding potential False Claims Act violations. dropped 9.38% on March 3. Then, on April 15, 2025, the company announced an agreement in principle to settle all claims for $29.75 million. Shares fell another 9.88% the next day, compounding investor losses.

Based on these events, investors filed a claim against Semler Scientific, alleging the company:

• it concealed a long-running DOJ investigation into...

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