MORE FRAUD AMONG THE DIABETES SECTOR

---

SAN DIEGO, Calif. — November 6, 2025 — Dexcom, Inc. (NASDAQ: DXCM), a leading manufacturer of continuous glucose monitoring (CGM) systems, is facing a new class action lawsuit alleging that the company made false or misleading statements about the performance and demand of its G6 and G7 glucose monitoring devices, shaking investor confidence.

The lawsuit, filed Thursday, accuses Dexcom of overstating the accuracy and reliability of its flagship devices, as well as the strength of market demand, despite ongoing reports of product malfunctions and regulatory scrutiny. Plaintiffs claim these alleged misrepresentations artificially inflated Dexcom’s stock price and misled shareholders about the company’s true financial health.

Dexcom has denied wrongdoing and continues to emphasize strong business momentum. The company recently reported robust quarterly earnings, with third-quarter revenue of roughly $1.2 billion, representing a 22% year-over-year increase driven by what executives described as “record demand” for its CGM systems. Analysts have credited much of Dexcom’s growth to the wider rollout of the G7 system and expanding access for people with type 2 diabetes and non-insulin users.

However, the legal filing comes amid growing scrutiny of Dexcom’s product safety record. Earlier this year, the U.S. Food and Drug Administration (FDA) issued a warning letter citing failures in the company’s design validation and risk-analysis procedures for its G6 and G7 models. Several device recalls have also been initiated over potential accuracy and alert failures.

Industry observers note that while Dexcom continues to dominate the CGM market, the allegations could expose it to significant financial and reputational risk. “If these claims gain traction, Dexcom may face both regulatory penalties and investor backlash,” said one market analyst. “Even with strong demand, trust is everything in medical technology.”

Dexcom maintains that its devices meet all regulatory standards and that its growth trajectory remains intact. “We stand by the performance and reliability of our CGM systems,” a company spokesperson stated, emphasizing that Dexcom “continues to improve access and outcomes for people living with diabetes.”

The case underscores a growing tension between rapid innovation in medical technology and investor expectations for transparency. As litigation unfolds, analysts say Dexcom’s next few quarters — and its ability to maintain market confidence — could determine whether the company’s “robust demand” story holds firm or begins to unravel.