Opinion ID: 212733
Heading Depth: 3
Heading Rank: 5

Heading: Stock Prices

Text: The plaintiffs describe the trajectory of stock prices at some length. The essential point, according to the plaintiffs, is that the stock price rose with profits through early 2006 to a high of just over $40, but by the end of the same year, after insurers began denying coverage, the price had dropped to below $15. A July 2006 article in Neurology Today noted a 17% spike in use of the neurology codes at issue, which the article attributed to use of automated devices, such as the NC-Stat. The 17% spike in usage was sufficient to trigger a Medicare investigation. The article also stated the position of an association of neurologists that the NC-Stat did not provide essential information that traditional nerve conduction studies would provide. On March 6, 2007, The Boston Globe reported that a federal grand jury was convened to investigate health care fraud issues with NeuroMetrix and the NC-Stat. The article described the company's billing recommendations and noted the failure to seek a unique CPT code. Following this article, shares fell to less than $10. At the end of the month, the company's Annual Report for 2006 noted the reimbursement problems, but, according to the complaint, further falsely reported that the nerve conduction tests performed by the NC-Stat System met the requirements stipulated in the AMA billing code and that these codes were currently being used by physicians to obtain reimbursement ..., except in the limited instances in which the local Medicare insurance carrier had denied or limited coverage. Id. at 37. In fall 2007, NeuroMetrix announced that it had made a presentation to an AMA working group on coding and expected recommendations shortly about coding for the procedure. At this point, the share price was $8.61. On February 11, 2008, TheStreet.com reported that the AMA had met and that the soon-to-be-rendered decision would result in minimal reimbursement to healthcare providers who used the NC-Stat and that the system would not be eligible for reimbursement under Medicare or Medicaid. Id. at 38. The next day, NeuroMetrix disclosed that it anticipated `significant challenges' with billing, which would continue to adversely impact their financial results. Id. at 39.