RADNOR, Pa., June 18, 2022 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed against CareDx, Inc. (“CareDx”) (NASDAQ: CDNA). The action charges CareDx with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of CareDx’s materially misleading statements and omissions to the public, CareDx’s investors have suffered significant losses.
CLICK HERE TO SUBMIT YOUR CAREDX LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/caredx-inc?utm_source=PR&utm_medium=link&utm_campaign=caredx&mktm=r
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LEAD PLAINTIFF DEADLINE: JULY 22, 2022
CLASS PERIOD: FEBRUARY 24, 2021 through MAY 5, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at [email protected]
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
CAREDX’S ALLEGED MISCONDUCT
On February 24, 2021, CareDx reported a 51% year-over-year increase in total revenue, with testing services revenue increasing from $104.6 million in 2019 to $163.5 million in 2020. CareDx presented the testing services segment as CareDx’s “growth driver” for which “demand continued unabated.” Moreover, the CareDx described its testing services segment as having “a winning formula” that would allow it to capture a massive total addressable market.
On October 28, 2021, CareDx filed its quarterly report for the third quarter of 2021 on a Form 10-Q which revealed that it had received several inquiries from multiple governmental agencies relating to its business and practices, including: (1) a civil investigative demand (CID) from the U.S. Department of Justice in connection with its False Claims Act investigation; (2) a subpoena from the SEC in relation its investigation relating to issues identified in the CID and certain of CareDx’s accounting and public reporting practices; and (3) an information request from an unnamed state regulatory agency. Following this news, the price of CareDx shares declined more than 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.
Then, after the markets closed on May 5, 2022, CareDx shocked the market when it announced its results for the first quarter of 2022. CareDx reported testing services revenue that fell well short of analysts’ expectations and yet another decline in average sales price in which CareDx’s average price declined by approximately 4.9% versus the last quarter of 2021, or what one analyst described as “another big deterioration in price.” Following this news, the price of CareDx stock declined 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.
WHAT CAN I DO?
CareDx investors may, no later than July 22, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages CareDx investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
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SOURCE Kessler Topaz Meltzer & Check, LLP