NEW YORK, May 02, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Innovative Industrial Properties, Inc. (NYSE: IIPR) and Natera, Inc. (NASDAQ: NTRA). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Innovative Industrial Properties, Inc. (NYSE: IIPR)
Class Period: May 7, 2020 – April 13, 2022
Lead Plaintiff Deadline: June 24, 2022
On April 14, 2022, market researcher Blue Orca Capital released a report describing the Company as “a marijuana bank masquerading as a REIT. IIPR’s model is to conduct sale-leaseback transactions with cannabis producers who are otherwise prohibited from borrowing money because of federal regulations.” The report further noted that “[u]nlike with other REITs, IIPR cannot expect to recover the lost income from defaulting tenants because it appears that the actual value of its properties are substantially below their carrying value on the IIPR’s balance sheet.”
On this news, the Company’s share price fell $13.76 per share, or 7.5%, to close at $169.68 per share on April 14, 2022.
According to the complaint, during the class period, defendants touted its rigorous underwriting standards and extensive experience in the cannabis industry. They also stated that the Company’s organization and operations qualify it to be taxed as a REIT for U.S federal income tax purposes. Notwithstanding, defendants failed to disclose that the value of the Company’s properties are significantly lower than represented and that the Company’s focus is to be a cannabis company lender rather than a REIT. Further, Innovative Industrial Properties’ top customers may not be able to continue making payments and the Company would face significant issues replacing those customers.
For more information on the IIPR class action go to: https://bespc.com/cases/IIPR
Natera, Inc. (NASDAQ: NTRA)
Class Period: February 26, 2020 – April 19, 2022
Lead Plaintiff Deadline: June 27, 2022
Natera, a Delaware corporation with principal executive offices in Austin, Texas, offers genetic testing in the areas of women’s health, oncology, and organ health. Among other things, the Company produces and markets a non-invasive prenatal test (“NIPT”) called “Panorama,” and a screening test for kidney transplant failure called “Prospera.” Natera’s common stock trades on the NASDAQ under the ticker symbol “NTRA.”
Throughout the Class Period, Defendants repeatedly assured investors that Panorama was reliable, that Prospera was more accurate than competing tests, and that Natera’s growth was driven by its superior technology and customer experience.
However, investors began to learn the truth on January 1, 2022, when The New York Times published a detailed report calling into question the accuracy of certain prenatal tests manufactured by Natera and other diagnostic testing companies. Among other things, The New York Times reported that Natera’s positive results for several genetic disorders were incorrect more than 80 percent of the time.
On this news, the price of Natera common stock fell $5.35 per share, or approximately 6% over two trading days, from a close of $93.39 per share on December 31, 2021, to close at $88.04 per share on January 4, 2022.
Less than two weeks later, on January 14, 2022, the Campaign for Accountability— a nonprofit watchdog group—filed a complaint with the SEC requesting an investigation as to whether “Natera repeatedly claimed – in marketing materials and earnings calls – that [its] tests are much more reliable than it appears they really are.”
On this news, the price of Natera common stock fell $6.29 per share, or more than 9%, from a close of $67.37 per share on January 14, 2022, to close at $61.08 per share on January 18, 2022.
Then, on March 9, 2022, Hindenburg Research (“Hindenburg”) issued an investigative report (the “Hindenburg Report”) alleging, among other things, that “Natera’s revenue growth has been fueled by deceptive sales and billing practices aimed at doctors, insurance companies and expectant mothers.”
On this news, the price of Natera common stock fell as much as $28.65 per share, or more than 52%, from a close of $54.75 per share on March 8, 2022, to an intra-day low of $26.10 per share on March 9, 2022.
On March 14, 2022, a jury found that Natera had intentionally and willfully misled the public by utilizing false advertisements to market Prospera in violation of the federal Lanham Act, the Delaware Deceptive Trade Practices Act, and Delaware common law. Among other things, the jury found that Natera’s marketing falsely claimed that Prospera was more accurate than the competing kidney transplant testing offered by CareDx, Inc. (“CareDx”). Ultimately, the jury awarded CareDx $44.9 million in monetary damages.
On this news, Natera common stock fell as much as $8.81 per share, or approximately 22.5%, from an intra-day high of $39.13 per share on March 14, 2022, to close at $30.32 per share on March 15, 2022.
On April 19, 2022, the United States Food and Drug Administration (“FDA”) issued a safety communication “to educate patients and health care providers and to help reduce the inappropriate use of [NIPTs].” The FDA cautioned that statements about NIPTs’ reliability and accuracy “may not be supported with sound scientific evidence” and revealed the existence of “cases where a screening test reported a genetic abnormality and a confirmatory diagnostic test later found that the fetus was healthy.” The FDA suggested that patients discuss benefits and risks with a healthcare provider before deciding to undergo NIPT or making any pregnancy-related decisions on the basis of NIPT results. In addition, the FDA advised health care providers that they should not rely on NIPT results alone to diagnose chromosomal abnormalities or disorders.
On this news, the price of Natera common stock fell as much as $1.53 per share, or approximately 3.9%, from an intra-day high of $39.63 per share on April 19, 2022, to close at $38.10 per share on April 20, 2022.
This 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 and operations. Specifically, Defendants misrepresented and/or failed to disclose: (1) Panorama was not reliable and resulted in high rates of false positives; (2) Prospera did not have superior precision compared to competing tests; (3) as a result of Defendants’ false and misleading claims about Natera’s technology, the Company was exposed to substantial legal and regulatory risks; (4) Natera relied upon deceptive sales and billing practices to drive its revenue growth; and (5) as a result of the foregoing, Defendants’ statements about the Company’s business, operations, and prospects lacked a reasonable basis.
As a result of Defendants’ wrongful acts and omissions, and the significant decline in the market value of the Company’s securities, Plaintiff and other members of the Class have suffered significant damages
For more information on the Natera class action go to: https://bespc.com/cases/NTRA
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
