Natera, Inc. Class Action Lawsuit - NTRA
- Company Name
- Natera, Inc.
- Stock Symbol
- Class Period
- February 26, 2020 to April 19, 2022
- Motion Deadline
- June 27, 2022
- Western District of Texas
The Natera class action lawsuit seeks to represent purchasers of Natera, Inc. (NASDAQ: NTRA) common stock between February 26, 2020 and April 19, 2022 inclusive (the “Class Period”). Commenced on April 27, 2022 in the Western District of Texas, the Natera class action lawsuit – captioned Schneider v. Natera, Inc., No. 22-cv-00398 (W.D. Tex.) – charges Natera and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the Natera class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the Natera class action lawsuit must be filed with the court no later than June 27, 2022.
CASE ALLEGATIONS: Headquartered in Austin, Texas, Natera offers genetic testing in the areas of women’s health, oncology, and organ health. Among other things, Natera produces and markets a non-invasive prenatal test (“NIPT”) called “Panorama,” and a screening test for kidney transplant failure called “Prospera.”
The Natera class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Panorama was not reliable and resulted in high rates of false positives; (ii) Prospera did not have superior precision compared to competing tests; (iii) as a result of defendants’ false and misleading claims about Natera’s technology, Natera was exposed to substantial legal and regulatory risks; (iv) Natera relied upon deceptive sales and billing practices to drive its revenue growth; and (v) therefore, defendants’ statements about Natera’s business, operations, and prospects lacked a reasonable basis.
On January 1, 2022, 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% of the time. On this news, the price of Natera common stock declined.
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 further declined by more than 9%, further damaging investors.
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 suffered a double-digit percentage decline.
Less than a week 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 the federal Lanham Act, the Delaware Deceptive Trade Practices Act, and Delaware common law. This news resulted in further declines in the price of Natera common stock.
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.” On this news, Natera’s share price declined once again.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Natera common stock during the Class Period to seek appointment as lead plaintiff in the Natera class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.