San Diego, Sept. 1, 2011 (Shareholders Foundation) -- An investigation on behalf of investors in shares of Cardionet Inc (NASDAQ:BEAT) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible Cardionet shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns certain statements regarding Cardionet business, its prospects and its operations were materially false and misleading at the time they were made.

Even though Cardionets annual Total Revenue rose from $72.99million for 07 to $119.92million in 2010, its 12months Revenue fell from $140.62million in 09 to $119.92million in 2010. Additionally its Net Loss increased from a Net Loss of $0.36million in 2007, respectively a Net Income of $9.21million, to a Net Loss of $19.86million in 2010. Its second quarter Revenue for 2011 decreased only slightly compared to last year second quarter Revenue, however its second quarter Net Loss increased from $2.14million last year to $3.01million Net Loss for the second quarter in 2011.

Shares of Cardionet Inc (Public, NASDAQ:BEAT) traded as high as $35.40 in August 08 and $28.32 in March 09.

Shares of Cardionet Inc (Public, NASDAQ:BEAT) fell from over $5 during May, June, and July 2011 to $3.46 on August 10, 2011 after Cardionet Inc reported its second quarter 2011 financial results. Then on August 30, 2011 after the market closed, CardioNet disclosed in a filing with the SEC that on August 25, 2011 the Company had received a Civil Investigative Demand (CID) issued by the U.S. Department of Justice (DOJ), Western District of Washington. On August 31, 2011, CardoNets common stock (NASDAQ: BEAT) declined by $0.55 per share, about 14.6%, in midday trading to about $3.22 per share.
According to the SEC filing, the CID states that it was issued in the course of an investigation under the federal false claims act and seeks documents going back to January 1, 2007. According to CardioNet, the investigation concerns allegations that the Company may have used inappropriate diagnosis codes when submitting claims for payment to Medicare for its real-time, outpatient cardiac monitoring services.

NASDAQ: BEAT stocks closed on Friday September 2, 2011 at $3.14 per share.