Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
10/29/2021
Initial Lawsuit
05/23/2022
Lawsuit Progression
07/22/2022
A 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.
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.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.