Lieff Cabraser announces that class action litigation has been filed on behalf of investors who purchased the common stock of CareDx, Inc. (“CareDx” or the “Company”) (Nasdaq: CDNA) from February 24, 2021 through May 5, 2022, inclusive (the “Class Period”).
If you purchased CareDx common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 22, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
CareDx investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, text or email firstname.lastname@example.org, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the CareDx Securities Class Litigation
CareDx is a San Francisco-based company that sells diagnostic services and products to organ transplant recipients.
The action alleges that, throughout the Class Period, CareDx misled investors and/or failed to disclose that: (1) defendants had engaged in a variety of improper and illegal schemes to inflate revenue and demand for testing services; (2) these practices subjected the Company to an undisclosed risk of regulatory scrutiny; and (3) these practices artificially inflated the revenue reported from CareDx’s testing services throughout the Class Period.
On October 28, 2021, CareDx disclosed that it was subject of at least three government investigations (by the U.S. Department of Justice, the Securities Exchange Commission, and a state regulatory agency), concerning the Company’s business practices related to its kidney testing and phlebotomy services, as well as its accounting and public reporting practices. On this news, the price of CareDx shares dropped $19.34, or 27.5%, from a closing price of $70.34 per share on October 28, 2021, to close at $51.00 per share on October 29, 2021, on extremely heavy trading volume.
On April 15, 2022, CareDx’s former Head of Community Nephrology, Dr. Michael Olymbios, sued the Company, alleging, among other things, that the Company had “engaged in various forms of clinical and marketing schemes in an effort to justify [CareDx product] AlloSure’s use, even when that use lacked clinical support and fell outside of the conditional approval extended to it [by Medicare].” On this news, the price of CareDx stock fell $2.86, or 8.1 %, from a closing price of $35.41 on the previous trading day, April 14, 2022, to close at $32.55 per share on the next trading day of April 18, 2022.
On May 5, 2022, CareDx announced that the Company’s testing service revenue fell significantly short of analysts’ expectations, and that average sales price had declined by approximately 4.9% compared with the final quarter of 2021. On this news, the price of CareDx stock dropped $5.88, or 18.6%, from a closing price of $31.66 per share on May 5, 2022, to close at $25.87 per share on May 6, 2022.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP