Company Website:
http://www.faruqilaw.com/
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.
Request more information now by clicking here: www.faruqilaw.com/NH.
There is no cost or obligation to you.
Take Action
You can also contact us by calling Richard Gonnello toll free at
877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
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.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with respect
to any future matter. We welcome the opportunity to discuss your
particular case. All communications will be treated in a confidential
manner.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170505005709/en/
Contacts:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New
York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone:
(877) 247-4292 or (212) 983-9330
Source: Faruqi & Faruqi, LLP
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