Initial Lawsuit
First Complaint - 05/23/2022A shareholder filed a federal securities class action on behalf of all persons or entities who purchased CareDx common stock between February 24, 2021, and May 5, 2022, inclusive against CareDx and certain of its officers seeking to pursue remedies under the Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq.
- Filing Date
05/23/2022 - Class Period
02/24/2021 to 05/05/2022 - Transgression
Securities Violation - Filing Firms
Saxena White P.A. - Case Title
Plumbers & Pipefitters Local Union #295 Pension Fund v. CareDx, Inc. et al - Docket Number
3:22-cv-03023 - Court
California Northern District Court - Free File
Complaint
Allegations
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(1) defendants had 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;
(3) these practices rendered the company’s testing services revenue reported throughout the class period artificially inflated; and
(4) as a result, defendants’ positive statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Defendants
- Company
CareDx, Inc - Chief Executive Officer
Reginald Seeto - Chief Financial Officer
Ankur Dhingra - Chief Financial Officer
Marcel Konrad - Executive Chairman
Peter Maag
