Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Western District of Texas on behalf of shareholders of Natera, Inc. who purchased shares between February 26, 2020 and April 19, 2022.
Natera and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On March 14, 2022, a jury found that the Company intentionally and willfully misled the public through its false advertisements to market Prospera, a screening test for kidney transplant failure, in violation of the federal Lanham Act, the Delaware Deceptive Trade Practices Act, and Delaware common law, including that the Company’s marketing falsely claimed that Prospera was more accurate than the competing kidney transplant testing offered by CareDx, Inc. Ultimately, the jury awarded CareDx $44.9 million in monetary damages. On this news, shares of Natera fell $8.81, or 22.5% to close at $30.32 per share on March 15, 2022.
Then, 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],” a non-invasive prenatal test like the Company’s product, Panorama, and cautioned that statements about NIPTs’ reliability and accuracy “may not be supported with sound scientific evidence.” On this news, shares of Natera fell as much as $1.53 per share, or approximately 3.9%, to close at $38.10 per share on April 20, 2022.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until June 27, 2022 to request that the court appoint them lead plaintiff.