CardioNet Inc., of Conshohocken, said it agreed to settle a proposed class action lawsuit over its 2008 initial public offering and a subsequent stock offering for $7.25 million.

The suit, filed by the West Palm Beach Police Pension Fund, had alleged the company made false statements about Medicare and insurance reimbursement rates for its heart-monitoring equipment in the run up to the two stock offerings.

Company shares, which hit $34.50 in mid 2008, were up 4 cents, to $2.39 in early afternoon trading.

CardioNet said it expects $6 million of the settlement to be covered by insurance.

Joe Capper, chief executive officer of CardioNet said the settlement would eliminate "uncertainties and expenses" associated with the litigation.    - Reid Kanaley