The Semler Scientific lawsuit has drawn significant attention from investors and legal experts alike. At the center of this controversy is an allegation that Semler Scientific, Inc. (NASDAQ: SMLR) misled shareholders by failing to disclose critical information about a federal investigation. Now, investors who purchased the company’s stock during the affected period are considering their legal options through the Semler Scientific class action lawsuit.
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Key Allegations and Timeline
The case focuses on whether Semler Scientific misrepresented or withheld material facts:
- Concealed DOJ Investigation
Between March 10, 2021, and April 15, 2025 (the “Class Period”), the company allegedly failed to disclose that it was under investigation by the Department of Justice for possible False Claims Act violations. While Semler’s filings mentioned general risks of enforcement actions, they did not acknowledge the ongoing, real investigation. - Stock Declines After Disclosures
- On February 28, 2025, the company revealed it had received a civil investigative demand from the DOJ back in 2017 over Medicare reimbursement practices tied to its QuantaFlo diagnostic device.
- It also disclosed that settlement talks with the DOJ had begun but failed, raising the prospect of litigation. Following this news, Semler’s share price fell over 9% by March 3, 2025.
- Later, on April 15, 2025, Semler announced a $29.75 million settlement agreement with the DOJ. The next day, shares declined nearly 10%, closing at $31.00.
These disclosures raised questions about transparency, fueling the Semler Scientific class action lawsuit.
Law Firms and Legal Actions
Multiple law firms have already filed or are investigating claims on behalf of Semler Scientific investors. The first class action complaint was filed in August 2025, covering anyone who bought shares during the Class Period. Investors now have until October 28, 2025, to request appointment as lead plaintiff.
This role is significant because the lead plaintiff represents the interests of all class members in court proceedings. Generally, the court favors investors with substantial financial losses to serve in this position.
What Investors Should Know
- Class Status
No class has been certified yet. This means investors are not automatically represented unless they take action. Doing nothing will leave them as “absent class members,” though they could still receive a share of any settlement later. - Contingency Representation
The attorneys handling the Semler Scientific lawsuit are working on a contingency fee basis. This means investors pay no upfront costs; instead, fees come out of any future recovery. - Options for Investors
Shareholders may:- File to serve as lead plaintiff by the October 28, 2025 deadline.
- Join the case as part of the broader class without direct involvement.
- Retain counsel to pursue an individual claim if losses are substantial.
Why the Case Matters
The Semler Scientific class action lawsuit highlights the importance of corporate transparency in protecting investor rights. By failing to disclose the DOJ investigation sooner, the company may have exposed shareholders to unnecessary financial risk.
For many investors, joining the case ensures they have a voice in seeking accountability and potential compensation. While securities litigation can take years, the outcome may offer financial recovery for those affected and serve as a warning to other companies about the cost of nondisclosure.
Ryan Myers is a business blog author and writer. He graduated from the University of California, Berkeley in 2009 with a degree in Political Science. His favorite topics to write about are blogging for small businesses and becoming an entrepreneur.
