Listen to the article
Securities law firm Faruqi & Faruqi has launched an investigation into Semler Scientific, Inc. as the deadline approaches for investors to join a federal securities class action lawsuit against the company.
The firm is urging investors who purchased Semler Scientific securities between March 10, 2021, and April 15, 2025, to consider their legal options and contact Partner James “Josh” Wilson to discuss potential claims. The deadline for affected investors to seek lead plaintiff status in the case is October 28, 2025.
The class action alleges that Semler Scientific and its executives violated federal securities laws by making false or misleading statements and failing to disclose crucial information to investors. At the center of the lawsuit is an allegation that the company concealed a material investigation by the United States Department of Justice (DOJ) regarding potential violations of the False Claims Act.
According to the complaint, Semler Scientific discussed possible violations of the False Claims Act only in hypothetical terms while failing to reveal that it was itself under investigation.
The issue came to light on February 28, 2025, when Semler Scientific filed its 2024 annual report with the Securities and Exchange Commission. The filing revealed that on February 11, 2025, the company had “began initial settlement discussions with DOJ, but ceased initial discussions on that date.” The report acknowledged that “there is a risk that DOJ will file a complaint or complaint in intervention in a civil False Claims Act lawsuit seeking damages,” though the company stated it “does not believe the amount of loss can be reasonably estimated.”
This revelation triggered immediate market concern. On the following trading day, Semler Scientific’s stock price fell more than 9%, significantly impacting shareholder value.
Semler Scientific, traded on NASDAQ under the ticker SMLR, develops and markets products designed for healthcare providers and their patients. The company has not provided detailed public statements regarding the specific nature of the DOJ investigation or why settlement discussions were initiated and then halted.
The False Claims Act is a federal law that imposes liability on persons and companies who defraud governmental programs. In the healthcare sector, violations often involve billing irregularities, kickbacks, or misrepresentations regarding products or services provided to government healthcare programs like Medicare or Medicaid.
Faruqi & Faruqi, which has offices in New York, Pennsylvania, California, and Georgia, reports it has previously recovered hundreds of millions of dollars for investors in similar cases. The firm is encouraging not only affected shareholders but also whistleblowers, former employees, and others with information about Semler Scientific’s conduct to come forward.
The court-appointed lead plaintiff in such cases represents the class of affected investors and directs the litigation. Typically, this position goes to the investor with the largest financial interest in the case who meets adequacy and typicality requirements.
The securities litigation comes at a challenging time for the healthcare technology sector, which has faced increased regulatory scrutiny in recent years. Government enforcement actions related to healthcare fraud have intensified, with the DOJ recovering billions annually through False Claims Act cases.
Investors seeking more information about the case can visit the firm’s dedicated webpage or contact Partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
The firm notes that previous results do not guarantee similar outcomes in future cases, and all communications will be treated confidentially.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
5 Comments
This is an important case to follow for anyone invested in Semler Scientific or the broader medical diagnostics industry. The allegations of False Claims Act violations could have significant financial and reputational implications for the company.
Interesting development regarding the Semler Scientific investigation. I wonder what specific false claims or violations of the False Claims Act the DOJ is looking into. Shareholders will certainly be eager to learn more details as the lawsuit progresses.
Yes, the timing of this announcement right before the investor deadline is certainly noteworthy. Investors will need to carefully review the details to assess the potential merits of joining the class action.
The allegations of Semler Scientific concealing a DOJ investigation are quite serious. As an investor, I would want to know exactly what the company knew and when they knew it. Transparency is key, especially for healthcare and medical device companies.
I agree. If the claims of misleading statements and failure to disclose material information are proven true, that would be very concerning. Investors deserve accurate and timely information to make informed decisions.