NEW YORK (TheStreet) -- Shares of Alere (ALR) were falling 12.98% to $36.74 on heavy trading volume early Friday afternoon after its diabetes unit, Arriva Medical, was removed from Medicare for allegedly billing 211 dead people.
The Centers for Medicare & Medicaid Services (CMS) has identified 47 of the 211 claims, according to a SEC filing.
Arriva's first notice was dated October 5, and the company's initial appeal was denied by CMS on November 4.
Arriva is attempting to have its enrollment status be retroactively reactivated to today's date in order to "bill and be reimbursed for all covered products or services furnished."
"We have conducted an initial investigation into the issue and do not believe that Arriva received or retained improper reimbursement for the DME items furnished," the filing says.
Additionally, Alere reported 2016 third-quarter results this morning. The company posted earnings of 19 cents per share on revenue of $582 million, while analysts were looking for a loss of 9 cents per share on $606 million in revenue.
About 2.75 million shares of Alere have been traded so far today, well above the company's average trading volume of roughly 452,805 shares a day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Alere's strengths such as its good cash flow from operations, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and generally higher debt management risk.
You can view the full analysis from the report here: ALR