August 10, 2010 - The court granted defendants' motion to dismiss.

March 26, 2010 - A motion to dismiss the amended consolidated complaint was filed.

February 19, 2010 - An amended consolidated complaint was filed.

September 15, 2009 - Another investor field a complaint on behalf of investors who purchased CardioNet Inc (NASDAQ: BEAT) common shares between April 30, 2009 and July 10, 2009. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between April 30, 2009 and July 10, 2009.

August 26, 2009 - An investor in shares of CardioNet Inc (NASDAQ: BEAT) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against CardioNet Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 30, 2009 and June 30, 2009.

According to the complaint the plaintiff alleges that CardioNet Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between April 30, 2009 and June 30, 2009, positive statements about CardioNet Inc’s revenues and earnings knowingly or recklessly disregarded that it was currently experiencing reductions in its reimbursement rates for its MCOT services and that these reimbursement rates were under review by payors, and a reduction in rates could result in CardioNet Inc’s current independent business model not being economically viable. The plaintiff alleges that defendants' financial outlook for 2009, 2010 and 2011 had no reasonable basis in fact because it was based on the current $1,123.07 rate for the MCOT system, which rate Defendants knew was under review by payors and which was likely to be reduced because of, inter alia, the cost-driven reimbursement environment which was driving down virtually all reimbursement levels set by commercial providers.

On April 24, 2009, Jefferies & Company issued a report in which it raised concerns that the rate of reimbursement by Highmark Medicare Services for CardioNet Inc’s 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, CardioNet Inc’s common stock declined by about $3.00, or 13%, to close at $19.94. On April 28, 2009 in direct response to the analyst report, CardioNet Inc issued a press release in which CardioNet Inc made the following statements: “Following the issuance of [the analyst] report, CardioNet Inc 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 Inc has not been notified of any proposed adjustment and believes that the reference in the analyst’s report to a pending reimbursement reduction is not based on any indication or suggestion provided by Highmark Medicare Services or CMS.” CEO Randy Thurman made 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 Inc has received information from senior officials at both CMS and Highmark Medicare Services. These officials have stated to us that the analyst’s suggestion of an imminent adjustment was not based on guidance from Highmark Medicare Services or CMS. CardioNet Inc 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, CardioNet Inc’s (NASDAQ: BEAT) common stock increased by about 6.5% to close at $21.22.

On July 12, 2009, CardioNet Inc 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, CardioNet Inc’s (NASDAQ: BEAT) common stock declined by approximately 33% from $8.83 to $5.87 on substantially heavier than usual volume. CardioNet Inc reported in 2007 Total Revenue of $72.99 million and in 2008 Total Revenue of $120.45 million with a Net Income of $9.21 million. Shares of CardioNet Inc (NASDAQ: BEAT) traded at $6.32 per share recently, down from a 52 week High of $35.89 per share.

CardioNet Inc, provides continuous, real-time ambulatory outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health.