Invested in
CareDx?
Contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Did you invest in CareDx, Inc. (NASDAQ: CDNA) in or before February 2021 and still hold your shares?
- Are you concerned about the CDNA stock price decline following the disclosure of three separate government investigations into business practices related to CareDx’s kidney testing and phlebotomy services?
- Are you concerned about the Medicare fraud allegations brought in April 2022 by a CareDx former employee?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
Contact Us About Your
Investments
Free Case Evaluation
The CareDx Class Action Investigation page is the resource for investors who bought CareDx shares in or before February 2021 and would like to evaluate compensation claims.
- Free Case Evaluation
- No Fees if No Recovery
- Contact Us Today
We can also do a Zoom call to discuss your matter.
Posted February 6, 2023
CareDx Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating alleged securities violations, corporate misconduct, and misrepresentations, as well as questionable business practices involving CareDx, Inc., and have identified potential areas of concern for CareDx investors.
What CareDx Investors May Do
CDNA investors interested to evaluate potential options to seek compensation and/or pursue claims related to their CareDx investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in CareDx, Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned CDNA stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Was CareDx Investigated by Federal and State Regulators?
CareDx disclosed in a 10-Q report dated October 28, 2021, that the United States Department of Justice (DOJ) had issued a civil investigative demand (CID) in connection with its False Claims Act investigation into “certain business practices” related to CareDx’s kidney testing and phlebotomy services.
Furthermore, in the same filing the company disclosed that the United States Securities and Exchange Commission (SEC) was conducting a similar investigation, in addition to also looking into CareDx’s accounting and public reporting practices.
CareDx also disclosed that it was subject to an information request by an unnamed state regulatory agency and indicated that the company “may receive additional requests for information from the DOJ, SEC, or other regulatory and governmental agencies regarding similar or related subject matters.”
Did CareDx Engage in Medicare Fraud?
In a complaint filed in April 2022, the former Head of Community Nephrology for CareDx alleged that CareDx executives “engaged in various forms of clinical and marketing schemes” to “maximize potential revenue associated with AlloSure.” According to the complaint, AlloSure is CareDx’s blood test designed to evaluate certain markers in kidney transplant patients to signal potential rejection by the organ recipient. Importantly, AlloSure was allegedly approved for Medicare reimbursement provided there is a clinical suspicion of rejection and to inform of a potential necessity of renal biopsy.
The complaint alleges that in an effort to justify AlloSure’s use in absence of clinical support and outside of the conditional approval imposed for Medicare reimbursement, CareDx executives allegedly engaged in improper activity, including:
- violating Medicare billing requirements,
- offering unrestricted grants to physicians in exchange for not enrolling patients in competitors’ clinical trials or for placing patients on AlloSure surveillance protocol “even when doing so was not warranted or authorized under Medicare billing guidelines,”
- altering test requisition forms to exclude a field used to explain the medical necessity for the test, and
- organizing company monitored “advisory boards” to encourage physicians to order AlloSure tests.
Furthermore, the complaint alleges CareDx executives repeatedly ignored employees who raised concerns about company’s “false representations” and “Medicare abuse,” among others. The case is currently pending.
Has CareDx Been Accused of Misconduct?
CareDx and its control persons are accused, among others, of allegedly making materially false and/or misleading statements, and/or failing to disclose that the company was in direct violation of the False Claims Act by engaging in improper Medicare billing.
The class action lawsuits further alleged that the company risked regulatory scrutiny and reputational harm by improperly paying kickbacks to physicians and other medical providers as an incentive to draw blood for unnecessary AlloSure tests, and by providing physicians with luxurious gifts or direct payments to enroll Medicare patients in CareDx studies, the complaints add.
The two CareDx class action lawsuits also accuse the CareDx executives of making false and misleading statements about the success of CareDx’s home blood testing called RemoTraC, allegedly failing to disclose that the product’s touted growth was primarily due to “illegal schemes to bill Medicare fraudulently for unnecessary tests.”
Do CareDx Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and are evaluating potential claims for compensation and/or other redress on behalf of CDNA shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a CareDx investor concerned about your investment and/or its value, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, CareDx investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The CareDx Class Action Investigation page is not affiliated with CareDx, Inc. The cases referenced in this blog are pending as of the date of this posting and there has not yet been an adjudication on the merits or settlement.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
- Posted on
- Posted on
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.