Aug 30 (Reuters) - CardioNet Inc said the U.S. Department of Justice issued a civil investigative demand (CID) on Aug. 25, relating to charges of incorrect Medicare claims.
The investigation is on allegations that the company, whose devices are used to diagnose and monitor heart rhythm disorders, may have used inappropriate diagnosis codes when submitting Medicare claims for its cardiac monitoring services.
The CID states that it was issued in the course of an investigation under the Federal False Claims Act and sought documents for Jan. 1, 2007 through Aug. 25.
CardioNet said it had no knowledge of the investigation before receiving the CID and plans to fully cooperate with the government.
The company’s shares closed at $3.77 on Tuesday on Nasdaq. (Reporting by Shravya Jain in Bangalore; Editing by Joyjeet Das)