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BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their CareDx investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
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Then, on April 15, 2022, the Company's former Head of Community Nephrology filed a complaint that provided detail 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.
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If you purchased CareDx common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
Investors suffering losses on their CareDx investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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.
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Then, on April 15, 2022, the Company's former Head of Community Nephrology filed a complaint that provided detail 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.
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If you purchased CareDx common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
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