SAN FRANCISCO, CA – (May 5, 2022) – Lieff Cabraser announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the common stock of Natera, Inc. (“Natera” or the “Company”) (Nasdaq: NTRA) from February 26, 2020 through April 19, 2022, inclusive (the “Class Period”).
If you purchased or otherwise acquired Natera common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than June 27, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Natera investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, text or email email@example.com, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the Natera Securities Class Litigation
Natera, headquartered in Austin, Texas, provides genetic testing in connection with women’s health, oncology, and organ health. Its products include a non-invasive prenatal test (“NIPT”), called “Panorama,” and a screening test for kidney transplant failure, called “Prospera.”
The action alleges that, throughout the Class Period, defendants misrepresented and/or failed to disclose that: (1) Panorama was unreliable and yielded high rates of false positives; (2) contrary to defendants’ claims, Prospera was not more precise than a competing test; (3) due to defendants’ false and misleading claims about Natera’s products, the Company was exposed to significant legal and regulatory risks; and (4) Natera relied upon deceptive sales and billing practices to drive its revenue growth.
On January 1, 2022, The New York Times published a report questioning the accuracy certain prenatal tests, including Natera’s. The report found that Natera’s tests resulted in false positives for certain genetic disorders over 80% of the time. On this news, the price of Natera common stock fell $5.35 per share, or 5.73% over the next two trading days, from its closing price of $93.39 per share on December 31, 2021, to close at $88.04 per share on January 4, 2022.
On January 14, 2022, a nonprofit watchdog group requested that the U.S. Securities and Exchange Commission investigate whether Natera had repeatedly overstated the reliability of its tests. On this news, the price of Natera common stock fell $6.29 per share, or 9.33%, from a previous close of $67.37 per share on January 14, 2022, to close at $61.08 per share on January 18, 2022.
On March 9, 2022, Hindenburg Research released a report alleging 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 $18.85 per share, or 32.79%, from its closing price of $54.75 on March 8, 2022, to close at $36.80 per share on March 9, 2022, on extremely heavy trading volume.
On March 14, 2022, in a case brought against Natera by a competing company, CareDx, a jury found that Natera had intentionally and willfully misled the public with false advertisements about Prospera, including by claiming that Prospera was more accurate than the kidney transplant test offered by CareDx, Inc. On this news, the price of Natera common stock fell $5.57 per share, or 15.52%, from a previous closing price of $35.89, to close at $30.32 per share on March 15, 2022, on heavy trading volume.
On April 19, 2022, the U.S. Food and Drug Administration (“FDA”) issued a warninig “to educate patients and health care providers and to help reduce the inappropriate use of [NIPTs].” The FDA cautioned that statements about the reliability and accuracy of NIPTs “may not be supported with sound scientific evidence” and confirmed the agency’s awareness of “cases where a screening test reported a genetic abnormality and a confirmatory diagnostic test later found that the fetus was healthy.” The FDA moreover advised health care providers that they should not use NIPT results alone to diagnose chromosomal abnormalities or disorders.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP