Semler Scientific Hit with Class Action Lawsuit Over DOJ False Claims Act Investigation

Semler Scientific (SMLR) is the subject of a class action lawsuit filed on August 29, 2025, by shareholders who claim they purchased stock at artificially inflated prices between March 10, 2021, and April 15, 2025. The lawsuit centers on allegations that the company failed to disclose a material investigation by the U.S. Department of Justice (DOJ) concerning violations of the False Claims Act. This Act protects federal programs from fraud and encourages whistleblowers.

The plaintiffs argue that Semler Scientific and its senior officers made false and misleading statements, specifically omitting information about the DOJ investigation from SEC filings. While the company acknowledged the government’s scrutiny of healthcare providers for Medicare billing issues, it allegedly concealed that it was already under investigation itself and engaged in settlement discussions. The company initially stated potential penalties for violating fraud laws.

Following the public disclosure of the investigation on February 28, 2025, and the subsequent announcement of a $29.75 million settlement agreement on April 15, 2025, SMLR stock experienced significant declines, including a nearly 10% drop after the settlement news and a year-to-date loss of over 57%. Investors seeking to join the lawsuit are directed to a provided link.

(Source：TipRanks)