An investigation on behalf of investors, who purchased CardioNet, Inc shares since April or earlier, over possible violations of securities laws by Cardionet Inc has been announced.

According to the investigation by a law firm the CardioNet, Inc. or the Company) (NasdaqGM: BEAT) is investigated for potential violations of the federal securities laws. Investors who purchased Cardionet Inc (Public, NASDAQ:BEAT) securities since April 2009 may be affected. On April 24, 2009, Jefferies & Company issued a report in which it raised concerns that the rate of reimbursement by Highmark Medicare Services for CardioNets mobile cardiac outpatient telemetry (MCOT) technology was at risk of being cut by at least $200 in a matter of weeks from the average rate of $1123. On April 24, 2009, CardioNets common stock declined by about $3.00, or 13%, to close at $19.94. The investigation points out that on April 28, 2009 in direct response to the analyst report, CardioNet issued a press release in which CardioNet made the following statements: Following the issuance of [the analyst] report, CardioNet has been in frequent communication, both written and verbal, with officials of Highmark Medicare Services and the Centers for Medicare and Medicaid Services (CMS) regarding the content of the analyst report. CardioNet has not been notified of any proposed adjustment and believes that the reference in the analysts report to a pending reimbursement reduction is not based on any indication or suggestion provided by Highmark Medicare Services or CMS.

Further more, so the investigation, CEO Randy Thurman went on to make the following additional comments: While it is not our practice to respond publicly to analyst reports, we felt that it was important to address some of the assertions contained in the April 24 report. Since the release of this analyst report, CardioNet has received information from senior officials at both CMS and Highmark Medicare Services. These officials have stated to us that the analysts suggestion of an imminent adjustment was not based on guidance from Highmark Medicare Services or CMS.CardioNet and Highmark Medicare Services have regularly discussed reimbursement for mobile cardiac telemetry since we began providing that service in 2002.

It has been our experience that any significant adjustment by a Medicare contractor of this nature would ordinarily occur after a substantial amount of interaction and dialogue with our organization. Then on April 28, 2009, CardioNets common stock increased by about 6.5% to close at $21.22. On July 12, 2009, CardioNet disclosed that it had received a letter from Highmark Medicare on July 10, 2009 stating that effective September 1, 2009 Highmark was adjusting its reimbursement rate for MCOT services to $754 per service, an approximate 33% reduction in reimbursement from the current reimbursement rate of $1123. On July 13, 2009, the first trading day after the disclosure, CardioNets common stock declined by approximately 33% from $8.83 to $5.87 on substantially heavier than usual volume.

CardioNet, Inc. (CardioNet), provides continuous, real-time ambulatory outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health. CardioNet, Inc reported in 2007 Total Revenue of $72.99million and in 2008 Total Revenue of $120.45million with a Net Income of $9.21million. Shares of CardioNet (NASDAQ: BEAT) traded at $6.32 per share recently, down from a 52weekHigh of $35.89 per share.