Law Offices Bernard M. Gross File Class Action Suit Against CardioNet (BEAT)

August 27, 2009 10:17 AM EDT

Law Offices Bernard M. Gross, P.C. commenced a class action lawsuit in the United States District Court, Eastern District of Pennsylvania, 09cv3894, on behalf of common stock purchasers of CardioNet, Inc. (Nasdaq: BEAT) between April 30, 2009 and June 30, 2009, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.

The complaint charges CardioNet and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

During the Class Period, defendants made positive statements about the Company's revenues and earnings knowingly or recklessly disregarded that it was currently experiencing reductions in its reimbursement rates for its MCOT services and that these reimbursement rates were under review by payors, and a reduction in rates could result in the Company's current independent business model not being economically viable. Defendants' financial outlook for 2009, 2010 and 2011 had no reasonable basis in fact because it was based on the current $1,123.07 rate for the MCOT system, which rate Defendants knew was under review by payors and which was likely to be reduced because of, inter alia, the cost-driven reimbursement environment which was driving down virtually all reimbursement levels set by commercial providers.

SOURCE - Law Offices Bernard M. Gross

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