CareDx(US:CDNA) Globenewswire·2025-03-19 12:00Core Viewpoint - A shareholder class action lawsuit has been filed against CareDx, Inc. for allegedly making false and misleading statements regarding its business practices and financial success during the Class Period from April 30, 2020, to November 3, 2022 [1] Group 1: Allegations Against CareDx - CareDx is accused of attributing its financial success to legitimate demand for its testing services, while in reality, it relied on unethical practices, including fraudulent billing to Medicare for unnecessary tests and paying kickbacks to doctors [2] - The company allegedly exploited its RemoTraC home testing program to promote its AlloSure tests, which cost Medicare $2,841 each, to patients who did not require them [2] Group 2: Impact on Stock and Investor Awareness - The lawsuit highlights a series of partial disclosures that revealed the truth about CareDx's operations between October 2021 and November 2022 [3] - On October 28, 2021, CareDx's stock price dropped by $19.34 per share, over 27%, following the announcement of investigations by the DOJ, SEC, and a state regulatory agency related to a False Claims Act investigation [4] - The stock continued to decline, reaching as low as $16.00 per share, as further negative information was disclosed, including executive resignations and a whistleblower complaint [4] Group 3: Legal Proceedings - The investigation aims to determine whether CareDx's board of directors violated securities laws or breached fiduciary duties in connection with the alleged misconduct [5] - Current shareholders who purchased shares before October 28, 2021, are encouraged to seek information about their legal rights and options [6]