The investigation centers on whether CVRx leadership misled shareholders regarding the health of its commercial sales force and the stability of its Medicare Advantage reimbursement rates. On August 6, 2026, the company revealed a U.S. Department of Justice Civil Investigative Demand concerning potential false claims and improper marketing of its Barostim heart failure device. These revelations were compounded by the disclosure that primary Medicare Advantage approvals for the device plummeted from an 80% success rate to just 25%.
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Hagens Berman Investigates CVRx Following 59% Stock Plunge
A 59% collapse in CVRx stock has triggered a formal investigation by Hagens Berman, a national litigation firm probing potential securities fraud. The inquiry follows a series of disclosures involving a Department of Justice investigation, significant revenue guidance cuts, and the sudden firing of the company’s Chief Revenue Officer.
Adding to the turmoil, CVRx reported severe operational failures, including stagnating sales growth and high turnover within its sales force, contradicting earlier assurances that its commercial transformation was largely complete. Three days after the stock price cratered, the company abruptly terminated Chief Revenue Officer Robert John. Reed Kathrein, the Hagens Berman partner leading the probe, is now examining whether a direct link exists between the Department of Justice inquiry and the executive's departure. The firm is currently soliciting information from investors who suffered losses and potential whistleblowers with non-public knowledge regarding the company’s internal practices.
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