PHILADELPHIA, March 19, 2025 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against CareDx, Inc. (NASDAQ: CDNA) on behalf of certain investors who purchased shares of the company’s stock between April 30, 2020 and November 3, 2022 (the “Class Period”).
According to the complaint, during the Class Period, CareDx and certain of the company’s executive officers made a series of materially false and misleading statements to investors about CareDx’s business and operational practices. Specifically, the defendants are alleged to have
attributed CareDx’s financial success to demand for its testing services and the popularity of its RemoTraC home testing program, while in reality, CareDx’s testing services growth relied almost entirely on unethical and improper schemes to bill Medicare fraudulently for unnecessary tests and pay kickbacks to doctors. Among its many unlawful and improper practices, defendants took advantage of its RemoTraC home testing program to systematically push its expensive AlloSure tests – each of which cost Medicare $2,841 – on patients who did not need the test and did not meet Medicare’s criteria for receiving them.
The complaint details how, through a series of partial disclosures, investors learned the truth about CareDx’s business and operational practices between October 2021 and November 2022.
For example, on October 28, 2021, shares of the company’s stock fell $19.34 per share, or over 27% in value, after CareDx disclosed that it was under investigation by the DOJ, the SEC, and a state regulatory agency in connection with a False Claims Act investigation. Shares of the company’s stock continued to decline in value – to as low as $16.00 per share, as CareDx slowly disclosed additional negative information to investors, including the resignations of several key executives and the filing of a whistleblower complaint.
The investigation seeks to determine – on behalf of CareDx’s current shareholders – whether the members of CareDx’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct and misstatements.
Current CareDx stockholders who purchased or acquired shares of the company’s stock prior to October 28, 2021 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) to receive additional information about their legal rights and options at (484) 229 – 0750, or by clicking on the following link (or by copying and pasting the link into your browser):
https://kaskelalaw.com/case/caredx-2/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
Adrienne Bell, Esq.
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750
www.kaskelalaw.com