Kirby McInerney LLP recalls in
NEW YORK, June 24, 2022 (GLOBE NEWSWIRE) — The law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired CareDx, Inc. (“CareDx”) (CDAC) from February 24, 2021 to May 5, 2022, both dates inclusive (the “Class Period”). Investors have until July 22, 2022 to ask the Court to be named lead plaintiff in the lawsuit.
CareDx is a diagnostics company that provides services and products to the organ transplant recipient community, offering diagnostic testing services, digital healthcare products and software for transplant patients and providers. care.
On October 28, 2021, after the market was closed, CareDx disclosed that it had received a request for a civil investigation from the United States Department of Justice as part of an investigation into “business practices related to [its] kidney testing and phlebotomy services. The Company had also received a subpoena from the United States Securities and Exchange Commission (“SEC”) for similar matters as well as certain accounting and reporting practices. On this news, the price of CareDx shares declined $19.34 per share, or approximately 27%, from $70.34 per share to close at $51.00 per share on October 29, 2021.
Then, on April 15, 2022, the company’s former head of community nephrology filed a complaint that provided details of CareDx’s misconduct, including the use of its home blood collection service, RemoTraC, to improperly bundling the Company’s most expensive testing services with other blood tests, which led to government investigations, as well as the Company’s knowledge of wrongdoing and attempts to cover it up. On this news, the price of CareDx shares fell $2.89, or approximately 8.1%, from $35.41 per share to close at $32.55 on April 18, 2022.
Then, on May 5, 2022, after the market closed, the company released its financial results for the first quarter of 2022, indicating that testing services revenue was below analysts’ expectations with an average price drop of 4.9%. %. On this news, the price of CareDx shares fell $5.88 per share, or approximately 18.6%, from $31.66 per share to close at $25.78 on May 6, 2022.
The lawsuit alleges that, throughout the class action period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the defendants engaged in a variety of improper schemes and illegal to inflate revenue and demand for testing services, including pushing surveillance protocol via inaccurate marketing materials, offering outrageous inducements or bribes to doctors and other providers, and inappropriately bundling expensive testing services along with other blood tests under the RemoTraC service; (2) these practices, and others, have subjected CareDx to undisclosed risk of regulatory scrutiny; (3) these practices artificially inflated the Company’s reported testing services revenues throughout the Class Period; and (4) therefore, defendants’ positive statements about the company’s business, operations and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
If you have purchased or otherwise acquired CareDx securities, have information, or wish to inquire about such claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email to [email protected]or by completing this contact form, to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.