Hagens Berman Probes CVRx After Stock Plunge and Executive Ouster
A 59% collapse in CVRx Inc. share price has triggered a formal investigation by Hagens Berman into potential federal securities law violations. The inquiry centers on whether the neuromodulation device maker misled shareholders regarding its sales force stability, Medicare reimbursement rates, and a looming Department of Justice probe.
The investigation follows a cascade of negative disclosures that began after the market closed on August 6, 2026. CVRx revealed it had received a Civil Investigative Demand from the Department of Justice in May 2026, which questions whether the company engaged in improper marketing or kickback schemes related to its Barostim heart failure device. Compounding these legal pressures, the company slashed its 2026 revenue guidance, citing internal turmoil within its sales organization and a sharp decline in Medicare Advantage approvals—which plummeted from an 80% success rate to just 25%.
Days after the stock cratered on August 7, the company abruptly fired Chief Revenue Officer Robert John. Hagens Berman partner Reed Kathrein stated the firm is now examining whether a direct link exists between the DOJ inquiry and the executive's termination, alongside potential misrepresentations concerning the company's growth prospects. Investors who sustained losses are being urged to submit claims for evaluation, while the firm is also seeking whistleblowers with non-public information regarding the company's business practices.
Comments (0)
No comments yet. Be the first!