NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in NantHealth, Inc. (“NantHealth” or the “Company”) (NASDAQ:NH) of the May 8, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased NantHealth securities in connection with the Company’s initial public offering on or about June 1, 2016 (the “IPO”), and/or between June 1, 2016 and March 6, 2017 (the “Class Period”). The case, Atul Singh Deora v. NantHealth, Inc. et al, No. 2:17-cv-01825 was filed on March 7, 2017, and has been assigned to Judge Beverly Reid O'Connell.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) NantHealth founder, Patrick Soon-Shiong (“Soon-Shiong”), 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 which exposes the Company to possible civil and criminal liability; (3) NantHealth improperly recorded orders received from the University of Utah as GPS Cancer test orders; (4) consequently, the Company reported false GPS Cancer order figures for the third quarter of 2016; and (5) as a result, the Company’s financial statements and statements about its business, operations, and prospects were materially false and/or misleading.
Specifically, on March 6, 2017, STAT, a news organization focused on medical industry reporting, published an article alleging that 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. Additionally, STAT alleged that NantHealth misled investors in reporting its third-quarter earnings in November 2016. The Company claimed that it had received 524 orders for the GPS Cancer test, and that one-third of those orders came from the University of Utah deal, but that the geneticist leading the research told STAT that the work they ordered from NantHealth had nothing to do with GPS Cancer.
On this news, NantHealth’s share price fell from $7.17 per share on March 3, 2017 to a closing price of $5.50 on March 6, 2017 — a $1.67 or a 23.29% drop.
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Faruqi & Faruqi, LLP also encourages anyone with information regarding NantHealth’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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