Semler Scientific ($SMLR) DOJ Investigation Concealment and False Claims Act Risks Case

Court: N.D. California

Case: 5:25-cv-07303

• SMLR investors filed a claim against Semler Scientific for concealing a multi-year DOJ investigation into alleged False Claims Act violations, while publicly downplaying such risks in filings and statements.
• After disclosing settlement talks with the DOJ on February 28, 2025, and later confirming an agreement in principle on April 15, 2025, SMLR fell a combined 18.6%, including 9.38% on March 3 and 9.88% on April 16.
• SMLR investors can join this case to be notified about potential recovery.

Case Details:

Between March 10, 2021, and April 15, 2025, Semler Scientific repeatedly warned investors about potential government scrutiny under the False Claims Act, but framed such risks as hypothetical. In reality, since 2017, the DOJ had been investigating Semler’s QuantaFlo device reimbursements under Medicare. The company received multiple civil investigative demands (CIDs) between 2017 and 2023 but failed to disclose them while continuing to certify compliance and financial accuracy.

The truth began to emerge on February 28, 2025, when Semler disclosed for the first time that it was in settlement talks with the DOJ regarding potential False Claims Act violations. SMLR dropped 9.38% on March 3. Then, on April 15, 2025, the company announced an agreement in principle to settle all claims for $29.75 million. Shares fell another 9.88% the next day, compounding investor losses.

Based on these events, SMLR investors filed a claim against Semler Scientific, alleging the company:

• it concealed a long-running DOJ investigation into False Claims Act violations.
• It misled investors by treating active regulatory risks as hypothetical.
• It artificially inflated its stock price while hiding exposure to material liabilities.

Investors argue Semler misrepresented compliance integrity and concealed government scrutiny, leaving shareholders exposed when the truth came out.