DexCom Faces Class Action Lawsuit Over Alleged Misconduct Affecting Investors
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
Updated: 48 minutes ago0mins
- Lawsuit Background: Kessler Topaz Meltzer & Check, LLP has filed a class action lawsuit against DexCom on behalf of investors who purchased its securities between January 8, 2024, and September 17, 2025, highlighting serious concerns over potential investor losses.
- Allegations: The lawsuit alleges that DexCom made unauthorized significant design changes to its G6 and G7 continuous glucose monitoring systems, which compromised device reliability and posed health risks to users, potentially leading to increased regulatory scrutiny and legal liabilities.
- Investor Action: Investors must apply to be appointed as lead plaintiffs by December 26, 2025, representing all investors in the litigation, indicating strong investor concern regarding corporate governance and transparency.
- Legal Consequences: If the lawsuit succeeds, DexCom may face substantial damages and reputational harm, further impacting its market performance and investor confidence, reflecting significant challenges in compliance and product safety.
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Analyst Views on DXCM
Wall Street analysts forecast DXCM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DXCM is 85.75 USD with a low forecast of 63.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
17 Buy
5 Hold
0 Sell
Strong Buy
Current: 65.250
Low
63.00
Averages
85.75
High
112.00
Current: 65.250
Low
63.00
Averages
85.75
High
112.00
Morgan Stanley
Patrick Wood
Equal Weight
to
Overweight
upgrade
$75
2025-12-02
New
Reason
Morgan Stanley
Patrick Wood
Price Target
$75
2025-12-02
New
upgrade
Equal Weight
to
Overweight
Reason
Morgan Stanley analyst Patrick Wood upgraded DexCom to Overweight from Equal Weight with a $75 price target.
Morgan Stanley
Morgan Stanley
Equal Weight -> Overweight
upgrade
$63 -> $75
2025-12-02
New
Reason
Morgan Stanley
Morgan Stanley
Price Target
$63 -> $75
2025-12-02
New
upgrade
Equal Weight -> Overweight
Reason
As previously reported, Morgan Stanley upgraded DexCom to Overweight from Equal Weight with a price target of $75, up from $63, citing signs that the company is already turning the corner from a number of operational challenges while valuation remains at trough levels. The firm expects this turn to become apparent in the full results due in January or February, adding that it believes the G7 15-day rollout's impact on margins in the year ahead is "underappreciated" and it expects the stock to re-rate as catalysts play out.
BofA
analyst
Buy
maintain
$10
2025-11-25
Reason
BofA
analyst
Price Target
$10
2025-11-25
maintain
Buy
Reason
After the Office of Inspector General report on Medicare payments for continuous glucose monitors and supplies came out, BofA noted that the report is just the OIG's recommendation to CMS and is not an update to the CMS proposal regarding competitive bidding from July. With that said, the firm views the OIG report positively for DexCom as it shows Class 2 supplies are priced fairly to in line with Medicare expectations, adds the analyst, who maintains a Buy rating and $10 price target on the shares.
Evercore ISI
In Line
initiated
$68
2025-11-25
Reason
Evercore ISI
Price Target
$68
2025-11-25
initiated
In Line
Reason
Evercore ISI initiated coverage of DexCom with an In Line rating and $68 price target. Though DexCom serves the "large and vastly underpenetrated" diabetes market, the firm's In Line rating reflects its belief that product quality and manufacturing issues and competitive threats will continue to disrupt the company's share gain opportunity through 2026, the analyst tells investors.
See All Ratings
About DXCM
DexCom, Inc. is a medical device company. The Company is primarily focused on the design, development, and commercialization of continuous glucose monitoring (CGM), systems for the management of diabetes and metabolic health by patients, caregivers, and clinicians. Its products include Dexcom G6, Dexcom G7, Stelo, Dexcom Share, and Dexcom ONE. The Company enables people to take control of health through innovative biosensing technology. Dexcom G6 is its integrated continuous glucose monitoring system (iCGM). Stelo is designed specifically for people with type II diabetes who do not use insulin as the first over-the-counter glucose biosensor in the United States. The Dexcom Share remote monitoring system, offered for use with any Dexcom system, uses an app on the patient’s compatible mobile device. Its Dexcom G7 is for adults and children (2+ years) living with type I or type II diabetes who are on any insulin or medications, at risk of hypoglycemia, and those with gestational diabetes.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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