BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming May 8, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased 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”). Investors who have suffered losses on their investment in NantHealth are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action.
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 during the Class Period you may move the Court no later than May 8, 2017 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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