A lawsuit was filed on behalf of investors in Natus Medical Inc (NASDAQ:BABY) shares over alleged securities laws violations. Deadline: March 31, 2017. NASDAQ:BABY investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/13/2017 -- An investor, who purchased shares of Natus Medical Inc (NASDAQ:BABY), filed a lawsuit in California over alleged Securities Laws violations by Natus Medical Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Natus Medical Inc (NASDAQ:BABY) have certain options and for certain investors are short and strict deadlines running. Deadline: March 31, 2017. NASDAQ:BABY investors should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges on behalf of certain purchasers of Natus Medical Inc (NASDAQ:BABY) common shares, that the defendants violated Federal Securities Laws.
On October 16, 2015, Natus Medical Inc announced that its Argentinian subsidiary had entered into a three-year supply contract with the Ministry of Health of Venezuela (the "Ministry of Health") pursuant to which the Company would receive $232.5 million, including $69 million in prepayments "expected" during the first quarter of 2016 (the "Supply Contract").
On October 21, 2015, Natus Medical Inc issued a release in which it increased its revenue and earnings guidance for its fiscal year ending December 31, 2015.
The plaintiff claims that between October 16, 2015 and April 3, 2016, the defendants issued false and misleading statements and/or failed to disclose adverse information regarding the Company's business and prospects, including, among other things, that the Venezuelan government had failed to make tens of millions of dollars in prepayments to Natus Medical Inc, which were required to have been paid beginning in October 2015, that Natus Medical Inc had no means to effectively enforce its rights under the Supply Contract, as Venezuela was the exclusive forum for dispute resolution, that Natus Medical Inc's receipt of revenues pursuant to the Supply Contract was contingent on the outcome of Venezuelan elections, and that as a result of the foregoing, Natus was not on track to achieve the increased guidance provided by defendants and such guidance lacked a reasonable basis.
On January 11, 2016, Natus Medical Inc revealed that it expected to fall short of its fourth quarter and fiscal year 2015 guidance. Natus Medical Inc also disclosed that "[t]he guidance provided by the Company in October for the fourth quarter of 2015 included expected revenue of approximately $4 million under the new Venezuelan Ministry of Health contract," but "[t]he Company was not able to ship product on the anticipated schedule because the prepayment under the contract was delayed."
On February 29, 2016, Natus Medical Inc filed its Annual Report on Form 10-K for fiscal year 2015 with the SEC, which disclosed that elections in Venezuela and Argentina and Venezuela's "highly inflationary economy and recessionary economic conditions" "may impact the likelihood of the Venezuelan Ministry of Health's following through with orders under the agreement, and [Natus's Argentinian subsidiary] ha[d] not yet received any prepayments under the agreement and no products or services ha[d] been shipped or provided." The Company attached a copy of the Supply Contract to the 10-K, which disclosed that $69 million in prepayments had been due by the end of 2015 and not the first quarter of 2016, as Natus Medical Inc had represented, and revealed that the Supply Contract was governed solely by Venezuelan law, meaning the Venezuelan government could unilaterally renege on all aspects of the agreement.
On April 4, 2016, Natus Medical Inc announced its preliminary revenue for the quarter ended March 31, 2016. The CEO of Natus Medical Inc announced that due to, "pushouts of key orders in both our international and domestic markets, revenue for the first quarter of 2016 is now weaker than expected."
Those who purchased shares of Natus Medical Inc have certain options and should contact the Shareholders Foundation.
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