CDNA); The deadline for the lead applicant is July 22, 2022
Whistleblowers: Anyone with non-public information regarding CareDx is encouraged to help confidentially. At Berger Montague survey or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to the complaint, CareDx misled investors that it had engaged in a variety of improper and illegal schemes to inflate revenue and demand, including pushing a surveillance protocol through marketing materials. inaccurate, offering extravagant inducements or bribes to doctors and other providers, and inappropriately bundling expensive testing services with other blood tests as part of the RemoTraC service.
The truth started to come out October 28, 2021, when CareDx disclosed in its Q3 2021 10-Q that CareDx was the subject of at least three government investigations related to its “accounting and reporting practices.” In response to this news, CareDx stock price fell 27% from a closing price of $70.34 per share on October 28, 2021at a closing price of $51.00 per share on October 29, 2021.
On April 15, 2022, CareDx’s former community nephrology manager filed a lawsuit in California Superior Court that provided extensive details about CareDx’s improper bundling of its most expensive testing services, including AlloSure, with other blood tests, which led to government investigations. In response to this filing, CareDx’s stock price fell an additional 8% on the next trading day, from a closing price of $35.41 per share on April 14, 2022at a closing price of $32.55 per share on April 18, 2022.
Finally, on May 5, 2022, CareDx issued a press release announcing first quarter 2022 financial results, reporting a nearly 5% decline in the average selling price of the company’s testing services. In response to this news, CareDx stock price fell 18.5% from a closing price of $31.66 per share on May 5, 2022at a closing price of $25.87 per share on May 6, 2022.
Shepherd Montaguewith offices at philadelphia cream, Minneapolis, washington d.c.and San Diegohas been a pioneer in securities class actions since its founding in 1970. Shepherd Montague has represented individual and institutional investors for over five decades and acts as lead counsel before courts across United States.
Andre Abramowitzsenior counsel
Michael Dell‘Angelo, executive shareholder
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