Kaskela Law LLC is investigating Natera, Inc. (NASDAQ: NTRA) on behalf of the company’s long-term investors.
Recently a securities fraud complaint was filed against Natera on behalf of certain investors who purchased shares of the company’s stock between February 26, 2020 and March 14, 2022. The complaint alleges that, during that time period, Natera and certain of the company’s executive officers made a series of false and misleading statements to investors about two of Natera’s core products (and significant drivers of revenue) – Prospera, a non-invasive kidney transplant rejection test, and Panorama, Natera’s non-invasive prenatal test (or “NIPT”).
As further detailed in the complaint, 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 in value.
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].” 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 in value once again.
The investigation seeks to determine whether the members of Natera’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Current Natera stockholders who purchased or acquired their NTRA shares prior to February 26, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, for additional information about this investigation and their legal rights and options.