Neurometrix Falls After Report of Fraud Investigation
Neurometrix Inc. shares fell 8 percent after the Boston Globe reported that the company, which makes devices that diagnose carpal-tunnel syndrome, is being investigated for possible health-care fraud.
Shares of the Waltham, Massachusetts-based company fell 84 cents to $10.18 as of 4 p.m. New York time in Nasdaq stock market composite trading.
The Boston Globe reported federal prosecutors will investigate whether the company was complicit in fraud against the government and kickbacks to doctors who use its NC-Stat system, which is used to diagnose nerve-related medical problems.
Kara Canoni, a Neurometrix spokeswoman, didn't return calls for comment from Bloomberg News. Neurometrix executives told the Globe yesterday they had no information about a grand jury meeting.