Natera, Inc. (NTRA) Misrepresented the Reliability and Accuracy of its Tests and Technology
According to the complaint, Natera produces and markets a non-invasive prenatal test [NIPT] called “Panorama,” and a screening test for kidney transplant failure called “Prospera.” During the class period, defendants assured investors Panorama was reliable, that Prospera was more accurate than competing tests, and that Natera’s growth was driven by its superior technology and customer experience. However, as investors began to learn the truth, the stock price spiraled downwards.
First, on January 1, 2022, The New York Times called into question the accuracy of certain prenatal tests manufactured by Natera and other diagnostic testing companies, finding that Natera’s positive results for several genetic disorders were incorrect more than 80 percent of the time. On this news, the stock fell 6%. Then, on January 14, 202, the Campaign for Accountability filed a complaint with the SEC 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, Natera stock fell more than 9%.
On March 9, 2022, Hindenburg Research reported that “Natera’s revenue growth has been fueled by deceptive sales and billing practices aimed at doctors, insurance companies, and expectant mothers.” Natera stock fell more than 52% as a result. On March 14, 2022, a jury found Natera had intentionally and willfully misled the public by falsely advertising that Prospera was more accurate than the competing kidney transplant testing offered by CareDx, Inc., awarding CareDx $44.9 million in damages. On this news, Natera stock fell more than 22%.
Finally, on April 19, 2022, the FDA issued a safety communication “to educate patients and health care providers and to help reduce the inappropriate use of [NIPTs].” On this news, Natera stock fell almost 4% to close at $38.10 per share on April 20, 2022.
Next Steps: If you acquired shares of Natera, Inc. (NTRA) between February 26, 2020 and April 19, 2022, you have until June 27, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.