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Securities – Fraud Claim – Medical Device Sales – Physician Coding Scam – DHHS Subpoena – Stock Price Fall (access required)

Caplin v. TranS1, Inc. Although the defendant-corporation’s Oct. 18, 2011 public statement precipitated a decline in the value of its stock, the statement mentioned only that the corporation had received a subpoena from the U.S. Department of Health and Human Services. The statement did not mention the basis of plaintiff’s fraud claim: that defendant was allegedly engaging in a scheme to get physicians to use the wrong code when making insurance claims involving defendant’s medical devices so that insurance companies would reimburse the physicians for procedures involving the devices.

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