Investor Class Action Strikes At CardioNet's Heart

Law360, New York (September 16, 2009, 4:57 PM EDT) -- Investors in medical device manufacturer CardioNet Inc. have sued the company and two of its executives for allegedly issuing false and misleading statements to artificially inflate CardioNet's stock price earlier this year.

In a putative class action filed Sept. 15 in the U.S. District Court for the Eastern District of Pennsylvania, investors accuse CardioNet and its CEO and chief financial officer of making aggressive projections for the company's mobile cardiac outpatient telemetry device and downplaying the potential for reduced reimbursement rates.

The suit quotes CardioNet CEO...
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