WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether NantHealth, Inc. (“NantHealth” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 or committed violations of Sections 11, 12 and 15 of the Securities Act of 1933.
Several class action lawsuits were filed in the U.S. District Court for the Central District of California by other law firms on behalf of purchasers of the common stock of NantHealth, Inc. (NASDAQ: NH) between June 1, 2016 and March 6, 2017, inclusive (the “Class Period”), including those who purchased shares pursuant or traceable to the Company’s initial public offering.
The complaint alleges that NantHealth and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Patrick Soon-Shiong, CEO of NantHealth, had donated funds through nonprofit organizations to the University of Utah for the purpose of funneling those funds back into NantHealth; (2) 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) the Company improperly recorded orders received from the University of Utah as orders of the Company’s GPS Cancer test; (4) as a result, the Company reported false and inflated GPS Cancer order figures for the third quarter of 2016; and (5) 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.
On March 6, 2017, the news organization STAT published an article claiming that Soon-Shiong had donated $12 million to the University of Utah under a contract that required the University to funnel the money back to NantHealth. The article alleged that the arrangement violated federal tax rules and allowed NantHealth to launder money through the University. The article further alleged that NantHealth misled investors by inflating orders for its GPS Cancer test when reporting its 3Q 2016 earnings. The price of NantHealth stock fell from $7.17 on March 3, 2017 to $5.50 on March 6, 2017.
Cohen Milstein encourages all investors who purchased NantHealth common stock pursuant or traceable to the IPO, and/or between June 1, 2016 and March 6, 2017; or former employees with information concerning this matter to contact the firm.
If you are a NantHealth shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than May 8, 2017 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: firstname.lastname@example.org; email@example.com