Investigation Continues Into CareDx Officers by Former Louisiana Attorney General's Firm

CareDx Under Scrutiny: Investigations Deepen

In a significant development for the medical testing company CareDx, Inc., former Louisiana Attorney General Charles C. Foti, Jr. and his firm, Kahn Swick & Foti, LLC (KSF), have announced they are extending their investigation into the company's officers and directors. CareDx, a provider of essential services and tests for transplant recipients, has been under the spotlight recently due to allegations surrounding its business practices.

The firm's investigation aligns with disconcerting reports that have surfaced regarding CareDx's operations. Notably, the company revealed on October 28, 2021, that it was the subject of federal investigations conducted by both the U.S. Department of Justice and the Securities and Exchange Commission. These inquiries pertain to various business practices specifically related to kidney testing and phlebotomy services.

Recent developments have raised eyebrows further following the resignation of key executives, including Chief Financial Officer Ankur Dhingra and Chief Marketing Officer Sasha King, in 2022. This ongoing shake-up hints at systemic issues within the company. Additionally, CareDx reported a troubling decline in overall revenue growth, with a notable 2.5% year-over-year drop amounting to $1.7 million from its diagnostic solutions segment. Simultaneously, operating costs surged by 14%, surpassing any revenue increases, leading to operational losses that nearly doubled to $17.3 million.

Moreover, the company's troubles deepened when it was sued in a securities class action lawsuit. The lawsuit alleges that CareDx failed to disclose critical information, potentially violating federal securities laws. Recently, the courts have denied the company’s attempts to dismiss the allegations, allowing the legal proceedings to move forward, thereby exacerbating shareholders' concerns.

KSF is currently scrutinizing whether the actions of CareDx's leadership may have breached fiduciary duties to shareholders or violated any state or federal laws. The firm's rigorous investigation underscores the gravity of the situation, particularly as it seeks to ensure accountability and transparency within the corporate structure.

For investors who have been affected or those who hold long-term shares in CareDx, KSF has opened channels for communication. Individuals are encouraged to reach out and share any information that could assist in the investigation regarding potential misconduct. The firm's managing partner, Lewis Kahn, is available for contact at 1-877-515-1850 or via email at email protected]. Additionally, those interested can visit [KSF's website for more information.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC is recognized as one of the leading boutique securities litigation law firms in the United States, with a track record of representing a diverse clientele that includes public institutional investors, hedge funds, and retail investors. The firm, with offices spread across notable cities like New York, California, Louisiana, and New Jersey, remains committed to seeking justice for those impacted by corporate malfeasance.

As the investigations into CareDx continue, it will be critical to monitor how these developments unfold and their implications for the company's stakeholders. The outcome could potentially set precedents for corporate governance standards within the healthcare industry.