CareDx, Inc. (NasdaqGM: CDNA)

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF continues its investigation into CareDx, Inc. (NasdaqGM: CDNA).  

CareDx provides medical services and tests for transplant recipients with notable products AlloSure, AlloMap, and RemoTraC. On October 28, 2021, the Company disclosed that it was the subject of two federal investigations by the U.S. Department of Justice (DOJ) and the SEC relating to “certain business practices related to [the Company’s] kidney testing and phlebotomy services.” On May 23 and September 1, 2022, the Company disclosed the resignation of its CFO, Ankur Dhingra, along with its chief marketing officer and chief commercial officer, Sasha King, respectively.  In November 2022, the Company disclosed lackluster overall revenue growth, including a $1.7 million (2.5%) YOY decline in revenue from its diagnostic solutions segment, as well as a 14% increase in operating costs, exceeding the increase in revenue, and that loss from operations nearly doubled from $8.7 to $17.3 million.

The Company has been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws. Previously, the court denied the Company’s motion to dismiss the case in part, allowing the case to continue. Recently, the court again denied the Company’s motion to dismiss the Third Amended Complaint.

KSF’s investigation is focusing on whether CareDx’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.  If you have information that would assist KSF in its investigation, or have been a long-term holder of CareDx shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or fill out the form on this page.