SAN DIEGO, Feb. 06, 2017 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain purchasers of shares of Natus Medical Inc (NASDAQ:BABY) over alleged Securities Laws Violations by Natus Medical Inc.
Investors, who purchased shares of Natus Medical Inc (NASDAQ:BABY), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
On October 16, 2015, Natus Medical Inc announced that its Argentinian subsidiary had entered into a three-year supply contract with the Ministry of Health of Venezuela (the "Ministry of Health") pursuant to which the Company would receive $232.5 million, including $69 million in prepayments "expected" during the first quarter of 2016 (the "Supply Contract").
On February 29, 2016, Natus Medical Inc disclosed that elections in Venezuela and Argentina and Venezuela's "highly inflationary economy and recessionary economic conditions" "may impact the likelihood of the Venezuelan Ministry of Health's following through with orders under the agreement, and [Natus's Argentinian subsidiary] ha[d] not yet received any prepayments under the agreement and no products or services ha[d] been shipped or provided." The Company attached a copy of the Supply Contract to the 10-K, which disclosed that $69 million in prepayments had been due by the end of 2015 and not the first quarter of 2016, as Natus Medical Inc had represented, and revealed that the Supply Contract was governed solely by Venezuelan law, meaning the Venezuelan government could unilaterally renege on all aspects of the agreement.
The plaintiff claims that the defendants issued false and misleading statements and/or failed to disclose adverse information regarding the Company's business and prospects, including, among other things, that the Venezuelan government had failed to make tens of millions of dollars in prepayments to Natus Medical Inc, which were required to have been paid beginning in October 2015, that Natus Medical Inc had no means to effectively enforce its rights under the Supply Contract, as Venezuela was the exclusive forum for dispute resolution, that Natus Medical Inc's receipt of revenues pursuant to the Supply Contract was contingent on the outcome of Venezuelan elections, and that as a result of the foregoing, Natus was not on track to achieve the increased guidance provided by defendants and such guidance lacked a reasonable basis.
Those who purchased Natus Medical Inc (NASDAQ:BABY) shares should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.