Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against CareDx, Inc. (CDNA)

New York, New York, UNITED STATES


NEW YORK, May 27, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against CareDx, Inc. (“CareDx” or the “Company”) (NASDAQ: CDNA) in the United States District Court for the Northern District of California on behalf of investors who purchased CareDx stock between February 24, 2021 through May 5, 2022, inclusive (the “Class Period”).

The Complaint alleges that 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.

Investors who purchased or otherwise acquired shares of CareDx should contact the Firm prior to the July 22, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.