SAN FRANCISCO, May 24, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges CareDx, Inc. CDNA investors to with significant losses to submit your losses now.
CareDx, Inc. (CDNA) Securities Fraud Class Action:
The complaint alleges that throughout the Class Period, CareDx reported growing revenue and strong demand in the Company's testing services segment.
These statements were misleading in that Defendants failed to disclose that: (1) Defendants engaged in a variety of improper and illegal schemes to inflate testing services revenue 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; (2) these practices, and others, subjected CareDx to an undisclosed risk of regulatory scrutiny; and, (3) these practices rendered the Company's testing service revenue reported throughout the Class Period artificially inflated.
Investors began to learn the truth on Oct. 28, 2021, when CareDx revealed that it was under investigation by the DOJ and the SEC in connection with possible violations of the False Claims Act as well as certain accounting and public reporting practices.
Then, on Apr. 15, 2022 investors learned more about the nature of the government investigations when CareDx's former Head of Community Nephrology (Dr. Michael Olymbios) filed a complaint accusing the company of engaging in illegal clinical and marketing schemes, including improper inducements to physicians, misleading research, and recommendations for clinically unsupported treatment.
Finally, on May 5, 2022, Defendants reported testing service revenue that fell well short of analysts' expectations and deteriorating average sales prices.
Each of these events have driven the price of CareDx shares sharply lower.
"We're focused on investors' losses and whether CareDx engaged in making false claims concerning its kidney tests to federal health care programs," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in CareDx and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding CareDx should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CDNA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
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