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Benzinga
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Short Report Alleges Dexcom Sold Faulty G7 Device Cited By FDA

1. DexCom sold an FDA-cited 'adulterated' glucose monitoring device. 2. G7 device inaccuracies have led to patient complaints and competitive losses. 3. Financial scrutiny over accounting tactics has analysts predicting stock declines. 4. Executives, including CEO, have departed amid worsening public perception. 5. Complaints grew significantly after unauthorized design changes to the G7 device.

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FAQ

Why Very Bearish?

The short report reveals serious safety issues and executive instability. Historical examples, like J&J’s Tylenol scandal, show how such allegations lead to long-term stock declines.

How important is it?

The reported device issues and executive changes significantly threaten DexCom's market position and investor trust.

Why Long Term?

Trust has been compromised; recovery will take time. Previous cases indicate that reputational damage often results in sustained market hesitance.

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