OAKLAND, Calif.--(BUSINESS WIRE)--$CDNA #CDNA--Shares of CareDx, Inc. plummeted more than 27% on Friday, October 29, 2021, after the company disclosed that the Department of Justice and SEC have launched investigations related to CareDx’s business practices, and that the SEC is also investigating the company’s accounting and public reporting practices. Gibbs Law Group is investigating a potential CareDx Securities Class Action Lawsuit on behalf of investors who lost money in CareDx, Inc. (NASDAQ: CDNA).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
After the market closed on Thursday, October 28, 2021, precision medicine company CareDx disclosed in an SEC filing that it is the target of a False Claims Act investigation by the U.S. Department of Justice. In the filing, CareDx explained that it had recently received a civil investigative demand from the DOJ concerning “certain business practices related to our kidney testing and phlebotomy services,” and is now being ordered to produce documents in connection with these concerns.
The company’s filing also revealed that it has received a subpoena from the SEC related to “matters similar to those identified in the CID, as well as certain of our accounting and public reporting practices.” The filing states that an additional unnamed state regulatory agency has also made an information request, and it’s possible the company will “receive additional requests for information from the DOJ, SEC, or other regulatory and governmental agencies regarding similar or related subject matters.” CareDx went on to say that “depending on the outcome of the DOJ or SEC investigations, the state law information request, or any other requests or investigations,” it may have to “expend significant financial and managerial resources in connection with responding to the CID, the SEC subpoena and other information requests” which could “seriously harm our business and our financial results.”
Following the news of the civil investigation and subpoena, CareDx’s stock price plummeted more than 27% on Friday, October 29, 2021, causing significant harm to investors.
What Should CareDx Investors Do?
If you invested in CareDx, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether CareDx has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
This press release may constitute Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
EILEEN EPSTEIN
PHONE: 510.350.9728
EMAIL: EJE@CLASSLAWGROUP.COM
