A securities class action has been filed in the USDC, N.D.CA. against CareDx, Inc. (CDNA) on behalf of all persons or entities who purchased CareDx common stock between February 24, 2021 through May 5, 2022.
CareDx is a diagnostics company that provides services and products to the organ transplant recipient community, offering diagnostic testing services, products, and digital healthcare software for transplant patients and care providers. The information gathered through the Company’s surveillance and tests purportedly enables clinicians to make treatment decisions in the event of signs of organ rejection.
The Complaint alleges that throughout the Class Period, Defendants had engaged in a variety of improper and illegal schemes to inflate testing services revenue, including:
- pushing protocols for surveillance of organ rejection through inaccurate marketing materials and in violation of Medicare standards;
- 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. These practices, and others, subjected CareDx to an undisclosed risk of regulatory scrutiny and rendered the Company’s testing services revenue and demand reported throughout the Class Period artificially inflated. As a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.