According to the law firm press release, Natus designs, manufactures and markets newborn care and neurology healthcare products and services worldwide.
On October 16, 2015, Natus 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"). Thereafter, on October 21, 2015, Natus issued a press release in which it increased its revenue and earnings guidance for its fiscal year ending December 31, 2015.
The complaint alleges that during the Class Period, 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: (i) the Venezuelan government had failed to make tens of millions of dollars in prepayments to Natus, which were required to have been paid beginning in October 2015; (ii) Natus had no means to effectively enforce its rights under the Supply Contract, as Venezuela was the exclusive forum for dispute resolution; (iii) Natus's receipt of revenues pursuant to the Supply Contract was contingent on the outcome of Venezuelan elections; and (iv) 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. As a result of defendants' false and misleading statements, Natus stock traded at artificially inflated prices during the Class Period, reaching prices above $50 per share, and certain of the Company's senior executives were able to cash in $14.5 million worth of their personally held Natus shares at artificially inflated prices.
An amended complaint was filed on July 14, 2017. Defendants filed a Motion to Dismiss the amended Complaint on September 12. On February 26, 2018, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to file an amended Complaint. Lead Plaintiff filed an amended Complaint on April 6. On May 9, Defendants filed a Motion to Dismiss the amended Complaint. The Court issued an Order on December 18, granting Defendants' Motion to Dismiss. Lead Plaintiff was given leave to amend the Complaint. Lead Plaintiff voluntarily dismissed the case on March 11, 2019.