Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of CareDx, Inc. who purchased shares between February 24, 2021 and May 5, 2022.
CareDx and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On October 28, 2021, the Company disclosed that it was the subject of at least three government investigations related to its “accounting and public reporting practices,” including the recent receipt of a civil investigative demand (“CID”) from the U.S. Department of Justice (“DOJ”) requesting the Company produce documents in connection with the DOJ’s False Claims Act investigation. On this news, shares of CareDx fell 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, on May 5, 2022, post-market, the Company announced its 1Q2022 results, disclosing testing service revenue that fell well short of analysts’ expectations and another decline in average sales price for testing in which the Company’s average price declined by approximately 4.9% versus the last quarter of 2021. On this news, shares of CareDx fell another 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.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until July 22, 2022 to request that the court appoint them lead plaintiff.