A lawsuit was filed on behalf of investors in Natera, Inc. (NASDAQ: NTRA) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 05/11/2022 -- An investor, who purchased NASDAQ: NTRA shares, filed a lawsuit against Natera, Inc over alleged violations of Federal Securities Laws.
Investors who purchased shares of Natera, Inc. (NASDAQ: NTRA) have certain options and for certain investors are short and strict deadlines running. Deadline: June 27, 2022. NASDAQ: NTRA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
San Carlos, CA based Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. On January 1, 2022, an article from the New York Times called into question the accuracy of certain prenatal tests, alleging that positive results on tests are incorrect about 85 percent of the time, and that patients who receive a positive result are supposed to pursue follow-up testing, which "can cost thousands of dollars, come with a small risk of miscarriage and can't be performed until later in pregnancy."
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, Inc. repeatedly claimed – in marketing materials and earnings calls – that its tests are much more reliable than it appears they really are.
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 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 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.
Shares of Natera, Inc. (NASDAQ: NTRA) declined from $96.80 per share on December 17, 2021, to as low as $33.89 per share on April 28, 2022.
The plaintiff claims that between February 26, 2020, and April 19, 2022, the Defendants misrepresented and/or failed to disclose that Panorama was not reliable and resulted in high rates of false positives, that Prospera did not have superior precision compared to competing tests, that as a result of Defendants' false and misleading claims about Natera's technology, the company was exposed to substantial legal and regulatory risks, that Natera relied upon deceptive sales and billing practices to drive its revenue growth, and that as a result of the foregoing, Defendants' statements about the company's business, operations, and prospects lacked a reasonable basis.
Those who purchased shares of Natera, Inc. (NASDAQ: NTRA) have certain options and should contact the Shareholders Foundation.
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About The Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.