- May 24, 2022
- Posted by: Mainframe Consulting
LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired CareDx, Inc. (“CareDx” or the “Company”) (NASDAQ: CDNA) common stock between February 24, 2021 and May 5, 2022, inclusive (the “Class Period”). CareDx investors have until July 22, 2022 to file a lead plaintiff motion.
If you suffered a loss on your CareDx investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/caredx-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On October 28, 2021, after the market closed, CareDx revealed that it had received a civil investigative demand from the U.S. Department of Justice as part of an investigation into the Company’s “business practices related to [its] kidney testing and phlebotomy services.” The Company had also received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) for similar issues as well as certain accounting and public reporting practices.
On this news, the Company’s share price fell $19.34, or 27%, to close at $51.00 per share on October 29, 2021, thereby injuring investors.
Then, on April 15, 2022, the Company’s former Head of Community Nephrology filed a complaint that provided details regarding CareDx’s misconduct, including the use of its home-based blood-drawing service, RemoTraC to improperly bundle the Company’s most expensive testing services with other blood tests, that led to the government investigations, as well as the Company’s knowledge of the misconduct and its attempts to conceal it.
On this news, CareDx’s stock fell $2.89, or 8.1%, to close at $32.55 on April 18, 2022, thereby injuring investors further.
Then, on May 5, 2022, after the market closed, the Company released its financial results for the first quarter of 2022, reporting that testing service revenue fell short of analysts’ expectations with an average price decline of 4.9%.
On this news, CareDx’s stock fell $5.88, or 18.6%, to close at $25.78 on May 6, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) CareDx had engaged in a variety of improper and illegal schemes to inflate testing services revenue and demand, including pushing a surveillance protocol through inaccurate marketing materials, offering extravagant inducements or kickbacks to physicians and other providers, and improperly bundling expensive testing services with other blood tests as part of the RemoTraC service; (2) these practices, and others, subjected CareDx to an undisclosed risk of regulatory scrutiny; (3) these practices rendered the Company’s testing services revenue reported throughout the Class Period artificially inflated; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired CareDx common stock during the Class Period, you may move the Court no later than July 22, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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Published at Tue, 24 May 2022 22:30:00 +0000