LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of a class (the “Class”) consisting of persons and entities that acquired NantHealth, Inc. (“NantHealth” or the “Company”) (NASDAQ: NH) securities either: (1) pursuant or traceable to the Company’s registration statement and prospectus issued in connection with the Company’s IPO which occurred on or about June 1, 2016; or (2) between June 1, 2016, and March 6, 2017, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move the Court no later than 60 days from the date of this notice, to serve as lead plaintiff. Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150, or at firstname.lastname@example.org to discuss this matter.
On March 6, 2017, STAT, a news organization focused on medical industry reporting, published an article alleging that NantHealth founder, Patrick Soon-Shiong (“Soon-Shiong”), had donated $12 million to the University of Utah from three different tax-exempt entities controlled by him under a contract that required the University to funnel much of that money into NantHealth. STAT alleged that the scheme allowed the Company to inflate the number of test orders it reported to investors. On this news, the Company’s stock price fell 23.2%, thereby injuring investors.
The filed complaint alleges claims under the Securities Exchange Act of 1934 and the Securities Act of 1933. According to the complaint, throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that Soon-Shiong had donated funds through nonprofit organizations to the University of Utah for the purpose of funneling those funds back into NantHealth; (2) that, as such, the Company and Soon-Shiong participated in the violation of federal tax laws—exposing the Company to possible civil and criminal liability; (3) that the Company improperly recorded orders received from the University of Utah as GPS Cancer test orders; (4) that, as a result, the Company reported false and inflated GPS Cancer order figures for the third quarter of 2016; and (5) that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about NantHealth’s business, operations, and prospects, were materially false and misleading.
If you purchased shares of NantHealth in connection with the Company’s IPO, or during Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to email@example.com, or visit our website at www.glancylaw.com.
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