Period: Jun 1, 2016 to Mar 6, 2017
Lead Plaintiff Deadline: May 8, 2017
Summary of Case:
A securities class action has been filed against NantHealth, Inc. ("NantHealth") (NASDAQ: NH) on behalf of a class (the "Class") consisting of persons and entities that acquired NantHealth 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. This case has been filed in the USDC - Central District of California.
The complaint alleges that 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 complaint alleges 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.
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