CareDx Investor Alert: Kaplan Fox Investigates Potential Securities Fraud at CareDx
NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of CareDx, Inc. (“CareDx” or the “Company”) (NASDAQ: CDNA), a diagnostics company that provides services and products to the organ transplant recipient community, offering diagnostic testing services, products, and digital healthcare software for transplant patients and care providers. A complaint has been filed on behalf of investors who purchased CareDx common stock between February 24, 2021 and May 5, 2022.
On October 28, 2021, CareDx filed its quarterly report for the third quarter of 2021 on Form 10-Q with the U.S. Securities and Exchange Commission (“SEC”). In the quarterly report, CareDx revealed that CareDx was the subject of multiple government investigations, including that (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 a DOJ 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. On this news, CareDx’s stock price fell $19.34 per share, more than 27%, to close at $51.00 per share on October 29, 2021.
Then, according to the complaint, on April 15, 2022, CareDx’s former Head of Community Nephrology, Dr. Michael Olymbios, filed a complaint in California Superior Court that provided extensive detail about misconduct by the Company and its top officers, including improper bundling of expensive testing services. Following the filing of the complaint by Dr. Olymbios, CareDx’s stock price fell $2.86 per share, about 8%, to close at $32.55 per share on April 18, 2022.
Finally, on May 5, 2022, CareDx announced the Company’s results for the first quarter of 2022. According to the complaint, CareDx reported testing service revenue that “fell well short of analysts’ expectations and yet another decline in average sales prices for its testing services 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.’” Following this news, CareDx’s stock price fell $5.88 per share, about 18.6%, to close at $25.78 per share on May 6, 2022.
If you are a member of the proposed Class, you may move the court no later than July 22, 2022 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing [email protected] or by calling (646) 315-9003.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 687-1980
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: [email protected]
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