Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired NantHealth, Inc. (“NantHealth”) (Nasdaq: NH) securities: (1) pursuant and/or traceable to NantHealth’s false and misleading Registration Statement and Prospectus, issued in connection with the company’s initial public offering on or about June 2, 2016 (the “IPO” or the “Offering”); and/or (2) on the open market between June 2, 2016 and March 3, 2017, both dates inclusive (the “Class Period”).
NantHealth, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, NantHealth is a transformational healthcare cloud-based IT company that purports to provide cloud-based platform solutions that converge science and technology through integrated clinical platform to provide actionable health information at the point of care for critical illnesses. In September 2014, the company’s founder and CEO, Patrick Soon-Shiong, announced a $12 million donation to the University of Utah in connection with an initiative to find genetic clues for the cause of diseases, including several cancers and amyotrophic lateral sclerosis.
On May 6, 2016, NantHealth filed a registration statement on Form S-1 with the SEC in connection with the company’s IPO. The registration statement was subsequently amended several times, with the final amended registration statement filed on Form S-1/A with the SEC on June 1, 2016. The complaint alleges that, on March 6, 2017, STAT, a news organization focused on medical industry reporting, published an article alleging that pursuant to the terms of Soon-Shiong’s donation to the University of Utah, the university was effectively required to spend $10 million on genetics analysis performed by NantHealth, an arrangement which enabled NantHealth to inflate by more than 50 percent the number of test orders it reported to investors in 2016. Also, the article quoted two tax experts stating that the deal “appeared to violate federal tax rules governing certain charitable donations” and “amount[ed] to indirect self-dealing by Soon-Shiong and his foundations.”
Following this news, NantHealth’s share price fell $1.67, or 23.29%, to close at $5.50 on March 6, 2017.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Soon-Shiong funneled business to NantHealth through his donation to the University of Utah, pursuant to the contractual terms of which the university was effectively required to spend $10 million on genetics analysis performed by the company; (ii) consequently, the number of test orders that NantHealth reported to investors was artificially inflated; (iii) the contracts governing Soon-Shiong’s donation to the university violated federal tax law; and (iv) as a result, NantHealth’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than May 8, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will will adequatley represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
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