NEW YORK, March 30, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against NantHealth, Inc. (“NantHealth” or the “Company”) (NASDAQ:NH) and certain of its officers, and is on behalf of a class consisting of all persons or entities who purchased NantHealth 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”). Investors are encouraged to learn more about this case by visiting the firm’s site: http://www.bgandg.com/nh.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
In September 2014, NantHealth’s founder and Chief Executive Officer (“CEO”), Defendant Patrick Soon-Shiong, publicized a $12 million donation to the University of Utah for an initiative to find genetic clues for the cause of diseases, including several cancers and amyotrophic lateral sclerosis. The donation came from three different tax-exempt entities controlled by Soon-Shiong: $9 million from two private foundations, and the remaining $3 million from the NantHealth Foundation, a medical research organization.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendant Soon-Shiong focused 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; (2) as a result, the number of test orders that NantHealth reported to investors was artificially inflated; (3) the contracts governing Soon-Shiong’s donation to the university violated federal tax law; and (4) consequently, NantHealth’s public statements were materially false and misleading at all relevant times.
On March 6, 2017, STAT, a news source, reported that NantHealth founder, Patrick Soon-Shiong, had donated $12 million to the University of Utah from three different tax-exempt entities he controlled under a contract that required the University to funnel most of that money into NantHealth. STAT also alleged that this scheme allowed NantHealth to inflate the number of test orders it reported to investors. Following this news, NantHealth stock dropped $1.67 per share, or 23.29%, to close at $5.50 on March 6, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/nh or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. You have until May 8, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.