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CDNA.US
id: 1597
CareDx (CDNA) Investor Settlement
Late claims are being considered for compensation, subject to approval.
$20,250,000
Cash SettlementN.D. California
Court3:22-cv-03023
Case number04/30/2020
Class period Start11/03/2022
Class period End11/12/2025
Claim deadlineCareDx ($CDNA) has reached a settlement with investors over claims that it misled them about revenue quality and compliance with Medicare billing rules.
Outline
In 2021, CareDx promoted growing revenue from its AlloSure test. But soon, it was accused of improper billing and paying kickbacks to doctors. After government investigations and financial problems became public, $CDNA dropped over 75%, and investors filed a lawsuit.
Timeline
- October 28, 2021 – CareDx disclosed federal and state investigations into its billing practices. $CDNA dropped 27.6% the next day.
- May 23, 2022 – The CFO resigned unexpectedly. $CDNA fell another 7.5%.
- June 24, 2022 – Investors filed a lawsuit, alleging CareDx misled them about revenue quality and billing compliance.
- September 1, 2022 – The Chief Marketing Officer resigned. $CDNA dropped 10% the next day.
- November 3, 2022 – CareDx reported high claim rejection rates and a steep decline in average selling prices.
- October 17, 2024 – CareDx agreed to a settlement with investors.
Background
CareDx offers diagnostic testing for organ transplant patients. Its main product, AlloSure, is a blood test used to monitor kidney rejection and was priced at nearly $2,900 per test.
In 2021, CareDx claimed strong growth and rising revenue. But later disclosures revealed the company had billed Medicare for tests that didn’t meet medical necessity rules and had paid illegal incentives to doctors. In October 2021, CareDx announced it was under investigation by the DOJ, SEC, and a state regulator, causing a steep drop in its stock price.
Over the next year, the company faced growing reimbursement denials, falling test prices, and key executive departures. In Q3 2022, CareDx admitted that 50% of its test claims were rejected and that pricing had fallen significantly compared to 2020.
Following these revelations, $CDNA fell more than 75%. After that, investors sued CareDx for misrepresenting its billing practices and financial health.
What Can Investors Expect Now?
CareDx ($CDNA) has reached a settlement with investors over claims that it misled them about revenue quality and compliance with Medicare billing rules.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Fraud
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.32
Filing date
07/22/2022
Plaintiffs
Plumbers & Pipefitters Local Union #295 Pension Fund ; Oklahoma Police Pension and Retirement System
Attorneys
Robbins Geller Rudman & Dowd LLP
Defendants
Peter Maag; Reginald Seeto
Judge
Trina L. Thompson
Administrator
A.B. Data Ltd
Court hearing date
12/02/2025
Exclusion deadline
10/14/2025
Objection deadline
10/14/2025
Attorney fee
$6,525,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
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