Philadelphia, Pennsylvania--(Newsfile Corp. - June 21, 2022) - Berger Montague is investigating securities fraud allegations on behalf of investors who purchased the securities CareDx, Inc. ("CareDx" or the "Company") (NASDAQ: CDNA) between February 24, 2021 and May 5, 2022 (the "Class Period").
If you purchased the securities of CareDx during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Michael Dell'Angelo at mdellangelo@bm.net or (215) 875-3080 or visit: https://investigations.bergermontague.com/caredx-inc/.
Whistleblowers: Anyone with non-public information regarding CareDx is encouraged to confidentially assist Berger Montague's investigation 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 about the fact that it had engaged in a variety of improper and illegal schemes to inflate revenues 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.
The truth began to emerge on 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 public reporting practices." In response to this news, CareDx's stock price fell 27%, from a closing price of $70.34 per share on October 28, 2021, to a closing price of $51.00 per share on October 29, 2021.
On April 15, 2022, CareDx's former Head of Community Nephrology filed a complaint in California Superior Court that provided extensive detail about CareDx's improper bundling of its most expensive testing services, including AlloSure, with other blood tests, which led to the government investigations. In response to this filing, CareDx's stock price fell an additional 8% the next trading day, from a closing price of $35.41 per share on April 14, 2022, to a closing price of $32.55 per share on April 18, 2022.
Finally, on May 5, 2022, CareDx issued a press release announcing financial results for Q1 2022, reporting a near 5% decline in the average sales price of the Company's testing services. In response to this news, CareDx's stock price fell 18.5%, from a closing price of $31.66 per share on May 5, 2022, to a closing price of $25.87 per share on May 6, 2022.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Michael Dell'Angelo, Executive Shareholder
Berger Montague
(215) 875-3080
mdellangelo@bm.net
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/128497
