SHAREHOLDER ALERT: Law firm Pomerantz is investigating claims on behalf of CareDx investors, … | New
NEW YORK, July 09 10, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in CareDx, Inc. (“CareDx” or the “Company”) (NASDAQ: CDNA). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529 ext. 7980.
The investigation relates to whether CareDx and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
On October 28, 2021, CareDx filed its Quarterly Report for the third quarter of 2021 on Form 10-Q with the United States Securities and Exchange Commission (“SEC”). In the quarterly report, CareDx revealed for the first time that CareDx was the subject of at least three government investigations, stating that: (1) the company “recently received” a request for a civil investigation (“CID”) the United States Department of Justice (“DOJ”) requesting the Company to produce documents in connection with a DOJ False Claims Act investigation; (2) the Company has received a subpoena from the SEC relating to an investigation by the SEC “into matters similar to those identified in the CID, as well as certain of our accounting and reporting practices”; and (3) the Company has received a request for information from an unnamed state regulator. On this news, CareDx stock price fell $19.34 per share, or more than 27%, to close at $51.00 per share on October 29, 2021.
Then, on April 15, 2022, former CareDx Community Nephrology Manager, Dr. Michael Olymbios, filed a lawsuit in California Superior Court that provided extensive details about the misconduct of the company and its employees. key executives, including inappropriate bundling of expensive testing services. Following the filing of the lawsuit, CareDx’s stock price fell $2.86 per share, or approximately 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. Among other items, CareDx announced testing services revenue well below analysts’ expectations and a further decline in average selling prices. of its testing services in which the company’s average price was down about 4.9% from the last quarter of 2021, or what one analyst described as “another big price deterioration.” On this news, CareDx stock price fell $5.97 per share, or 18.5%, to close at $25.87 per share on May 6, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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