DexCom, Inc. (NASDAQ: DXCM): DexCom, Inc. has been sued for securities fraud after significant stock drops resulting from potential violations of the federal securities laws. The decline in DexCom’s share price caused significant losses to investors. The class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in DexCom securities. The class action is pending in the U.S. District Court for the Southern District of New York and is captioned Prime v. DexCom. Inc., et al., No. 1:25-cv-08912.
If you lost money on your investments in DexCom, you are encouraged to submit your information.
Why Was DexCom Sued for Securities Fraud?
DexCom develops and manufactures continuous glucose monitoring (“CGM”) systems for diabetics. The company’s products include its Dexcom G6 (“G6”) and Dexcom G7 (“G7”) CGM systems. The G7 is DexCom’s most important product.
During the relevant period, DexCom touted the reliability and “tried and true and proven” accuracy of the G7, claiming it was “the most accurate CGM” on the market. The company also told investors the enhancements it made to the G7 were “making it even better” and “enrich[ing] the experiences” of its customers. DexCom also asserted it was “making steady progress towards our long-term cost targets,” citing the success of the “migration of our customer base from G6 to G7” and the ramping of its manufacturing facilities.
As alleged, in truth, DexCom made design changes to the G6 and G7 that were not authorized by the FDA, which reduced the accuracy of both devices. Consequently, customers who relied on the devices for precise glucose readings faced potentially life-threatening health risks. Moreover, DexCom allegedly ignored the risks posed to its customers to keep costs down.
Why did DexCom’s Stock Drop?
On March 7, 2025, DexCom disclosed that it received a warning letter from the FDA related to concerns about the manufacturing processes and quality management systems at certain of the company’s manufacturing facilities. On this news, the price of DexCom stock dropped $7.12 per share, or more than 9%, from $77.84 per share on March 7, 2025, to $70.72 per share on the next trading day, March 10, 2025.
Then, on March 25, 2025, the FDA published the warning letter, which revealed that DexCom had “adulterated” its G6 and G7 products by modifying the devices without prior FDA approval, thereby subjecting the devices to “larger inaccuracies” that “cause higher risks for users who rely on the sensors to dose insulin or make other diabetes treatment decisions.” This news caused the price of DexCom stock to decline $3.19 per share, or more than 4%, over the following two trading days, from $75.32 on March 24, 2025, to $72.13 per share on March 26, 2025.
Next, on September 8, 2025, the equity research firm Oppenheimer downgraded DexCom’s rating from “perform” to “outperform” and removed its $102.00 price target on the company’s stock. Oppenheimer noted that “field checks point to rising concerns about G7 accuracy/performance,” and discussed patient concerns with the G7’s accuracy and certain device malfunctions. On this news, the price of DexCom stock fell $2.52 per share, or more than 3%, from $80.51 per share on September 5, 2025, to $78.00 per share on September 8, 2025.
On September 18, 2025, the investigative news outlet and investment firm Hunterbrook published a report about DexCom titled, “Dexcom’s Fatal Flaws.” The report was based on documents procured from the FDA from a Freedom of Information Act request, and the accounts of doctors, patients, and former DexCom employees. The report revealed that “G7 users have been hospitalized and died” after receiving “incorrect glucose readings.” Hunterbrook also reported that “Dexcom staff say corporate culture put margins over safety,” including ignoring “safety concerns in a rush to launch the G7.” The Hunterbrook report caused the price of DexCom stock to fall $8.99 per share, or nearly 12%, over the next two trading days, from $76.44 per share on September 17, 2025, to $67.45 per share on September 19, 2025.
Most recently, on October 30, 2025, during DexCom’s 3Q 2025 earnings call, the company admitted that quality issues with the G7 had negatively impacted new patient growth. On this news, the price of DexCom Stock fell $9.98 per share, or more than 14%, from $68.20 per share on October 30, 2025, to $58.22 per share on October 31, 2025.
What is the DexCom Class Action Deadline?
You may ask the Court no later than December 26, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
Contact Us:
If you lost money when DexCom securities dropped in price, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212.789.3619
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
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