The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that the firm has filed a securities class action lawsuit against Natera, Inc. ("Natera") (NASDAQ: NTRA) on behalf of all persons and entities who purchased or otherwise acquired Natera common stock between February 26, 2020, and April 19, 2022, inclusive (the "Class Period").
CLICK HERE TO SUBMIT YOUR NATERA LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/natera-inc?utm_source=PR&utm_medium=link&utm_campaign=natera&mktm=r.
CANNOT VIEW THIS VIDEO? PLEASE CLICK HERE
TO VIEW OUR COMPLAINT, PLEASE CLICK HERE
LEAD PLAINTIFF DEADLINE: JUNE 27, 2022
CLASS PERIOD: FEBRUARY 26, 2020 through APRIL 19, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Email at [email protected]
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
NATERA'S ALLEGED MISCONDUCT
Natera, a Delaware corporation with principal executive offices in Austin, Texas, offers genetic testing in the areas of women's health, oncology, and organ health. Among other things, the Company produces and markets a non-invasive prenatal test (NIPT), called "Panorama," and a screening test for kidney transplant failure, called "Prospera." Throughout the Class Period, Defendants repeatedly assured investors that Panorama was reliable, that Prospera was more accurate than competing tests, and that Natera's growth was driven by its superior technology and customer experience.
Investors, however, began to learn the truth on January 1, 2022, when The New York Times published a detailed report calling into question the accuracy of certain prenatal tests manufactured by Natera and other diagnostic testing companies. Among other things, The New York Times reported that Natera's positive results for several genetic disorders were incorrect more than 80 percent of the time. On this news, the price of Natera common stock fell $5.35 per share, or approximately 6% over two trading days, from a close of $93.39 per share on December 31, 2021, to close at $88.04 per share on January 4, 2022.
Less than two weeks later, on January 14, 2022, the Campaign for Accountability-a nonprofit watchdog group-filed a complaint with the U.S. Securities and Exchange Commission requesting an investigation as to whether Natera repeatedly claimed - in marketing materials and earnings calls - that its tests are much more reliable than it appears they really are. On this news, the price of Natera common stock fell $6.29 per share, or more than 9%, from a close of $67.37 per share on January 14, 2022, to close at $61.08 per share on January 18, 2022.
Then, on March 9, 2022, Hindenburg Research issued an investigative report alleging, among other things, that "Natera's revenue growth has been fueled by deceptive sales and billing practices aimed at doctors, insurance companies and expectant mothers." On this news, the price of Natera common stock fell as much as $28.65 per share, or more than 52%, from a close of $54.75 per share on March 8, 2022, to an intra-day low of $26.10 per share on March 9, 2022.
Several days later, on March 14, 2022, a jury found that Natera had intentionally and willfully misled the public by utilizing false advertisements to market Prospera in violation of federal and state laws. Among other things, the jury found that Natera's marketing falsely claimed that Prospera was more accurate than the competing kidney transplant testing offered by CareDx, Inc. Ultimately, the jury awarded CareDx, Inc. $44.9 million in monetary damages. On this news, Natera common stock fell as much as $8.81 per share, or approximately 22.5%, from an intra-day high of $39.13 per share on March 14, 2022, to close at $30.32 per share on March 15, 2022.
Finally, on April 19, 2022, the United States Food and Drug Administration (FDA) issued a safety communication "to educate patients and health care providers and to help reduce the inappropriate use of [NIPTs]." The FDA cautioned that statements about NIPTs' reliability and accuracy "may not be supported with sound scientific evidence" and revealed the existence of "cases where a screening test reported a genetic abnormality and a confirmatory diagnostic test later found that the fetus was healthy." The FDA suggested that patients discuss benefits and risks with a healthcare provider before deciding to undergo NIPT or making any pregnancy-related decisions on the basis of NIPT results. In addition, the FDA advised health care providers that they should not rely on NIPT results alone to diagnose chromosomal abnormalities or disorders. Following this news, the price of Natera common stock fell as much as $1.53 per share, or approximately 3.9%, from an intra-day high of $39.63 per share on April 19, 2022, to close at $38.10 per share on April 20, 2022.
The complaint alleges that, throughout the Class Period, the Defendants misrepresented and/or failed to disclose that: (1) Panorama was not reliable and resulted in high rates of false positives; (2) Prospera did not have superior precision compared to competing tests; (3) as a result of Defendants' false and misleading claims about Natera's technology, the company was exposed to substantial legal and regulatory risks; (4) Natera relied upon deceptive sales and billing practices to drive its revenue growth; and (5) as a result of the foregoing, Defendants' statements about the company's business, operations, and prospects lacked a reasonable basis.
WHAT CAN I DO?
Natera investors may, no later than June 27, 2022, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Natera investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/123506
This content is published on behalf of the above source. Please contact them directly for any concern related to the above.