According to the Complaint, Natera is a leading genetic testing company that develops and commercializes noninvasive methods for analyzing DNA. Natera's primary product is Panorama, a non-invasive prenatal test ("NIPT"), launched in March 2013, which the Company claims is the "most accurate NIPT commercially available. in the United States." Natera went public on July 2, 2015 at an IPO price of $18 per share, and quickly traded up to close its first day of public trading at $22.74 per share. The Company's common stock is listed and trades on the NASDAQ stock exchange under the ticker symbol "NTRA."
The Complaint alleges the offering materials falsely and misleadingly represented the state of Natera's business, including that Natera had experienced a nearly $20 million net loss in the Company's second quarter 20 15 ("2Q 15") -which had ended before the IPO -and which loss exceed any other quarterly loss the Company had suffered by as much as 3700% since at least 2Ql3 when Panorama was released. In addition, Natera had experienced a 2Q15 revenue decline, which was also the second quarter in a row of declining revenue - contrary to the state of Natera's business depicted in the Registration Statement. In fact, Panorama tests accessioned in which revenue was recognized had already flat-lined at 28,000+ tests, and the percent of Panorama tests accessioned in which revenue was recognized in the same quarter had dramatically declined to a mere 47%, far below the percentage in prior quarters, indicating bleak prospects for the Company's principal product- far from what was portrayed in the Registration Statement and roadshow for the Offering.
This action was remanded to state court on August 23, 2016. Defendants filed a Notice appealing the Court's decision on September 7. On April 19, 2018, Defendants voluntarily dismissed the appeal.