CareDx Deadline Alert
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In CareDx To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - May 23, 2022) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CareDx Inc. ("CareDx" or the "Company") (NASDAQ: CDNA) and reminds investors of the July 22, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in CareDx stock or options between February 24, 2021, and May 5, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/CDNA.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, defendants had engaged in a variety of improper and illegal schemes to inflate testing services revenue, including: (1) pushing protocols for surveillance of organ rejection through inaccurate marketing materials and in violation of Medicare standards; (2) offering extravagant inducements or kickbacks to physicians and other providers; and (3) improperly bundling expensive testing services with other blood tests as part of the RemoTraC service.
Investors began to learn the truth regarding Defendants' Class Period misrepresentations after the financial markets closed on October 28, 2021, when CareDx filed its quarterly report for the third quarter of 2021 on Form 10-Q with the SEC. Under the heading "United States Department of Justice and United States Securities and Exchange Commission Investigation," The form 10-Q revealed for the first time that CareDx was the subject of at least three government investigations. Specifically, the Form 10-Q reported (1) the Company had "recently received" a civil investigative demand ("CID") from the U.S. Department of Justice ("DOJ") requesting the Company produce documents in connection with the DOJ's False Claims Act investigation; (2) the Company received a subpoena from the SEC in relation to an investigation by the SEC "in respect to matters similar to those identified in the CID, as well as certain of our accounting and public reporting practices" and (3) the Company received an information request from an unnamed state regulatory agency (collectively "government investigations").
In response to the disclosures of the government investigations, the price of CareDx shares declined more than 27% the next trading day, from a closing price of $70.34 per share on October 28, 2021, to a closing price of $51.00 per share on October 29, 2021.
The Company then remained silent on the status of the government investigations for several months. But investors learned more about the extent of the Company's misconduct and the nature of the government investigations on April 15, 2022, when the Company's former Head of Community Nephrology, Dr. Michael Olymbios, filed a complaint in California Superior
Court1 that provided extensive detail about: (1) Defendants' misconduct, including the use of RemoTraC to improperly bundle the Company's most expensive testing services, including AlloSure, with other blood tests, that led to the government investigations; (2) Defendants' knowledge of the misconduct throughout the Class Period; and (3) their attempts to conceal the misconduct. In response to the revelations in the Olymbios Complaint, the price of CareDx stock fell an additional 8% to close trading the next trading day, April 18, 2022, at $32.55 per share.
Investors further learned the impact of Defendants' misconduct and the resulting government investigations on CareDx's business prospects after the markets closed on May 5, 2022. In connection with the announcement of the Company's results for the first quarter of 2022, Defendants reported testing service revenue that fell well short of analysts' expectations and yet another decline in ASP in which the Company's average price declined by approximately 4.9% versus the last quarter of 2021, or what one analyst described as "another big deterioration in price." In response to these disclosures, the price of CareDx stock declined another 18.5% the following trading day, from a closing price of $31.66 per share on May 5, 2022, to a closing price of $25.87 per share on May 6, 2022.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding CareDx's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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