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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of May 22, 2020 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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January 31, 2020 - The court preliminarily approved the settlement.
December 9, 2019 - A stipulation of settlement was filed by the parties.
March 27, 2018 - The court granted in part and denied in part the defendants' motion to dismiss.
August 2, 2017 - A motion to dismiss the amended consolidated complaint was filed.
June 26, 2017 - An amended consolidated complaint was filed.
March 7, 2017 - An investor in shares of NantHealth Inc (NASDAQ: NH) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by NantHealth Inc in connection with certain allegedly false and misleading statements made between June 1, 2016, and March 6, 2017.
Culver City, CA based NantHealth Inc is a healthcare cloud-based IT company that is engaged in converging science and technology through a single integrated clinical platform, to provide actionable health information at the point of care. NantHealth Inc Went public in June 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of NantHealth Inc (NASDAQ: NH) common shares in connection with the Company’s initial public offering (“IPO”) which occurred on or about June 1, 2016 and/or between June 1, 2016, and March 6, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose that Soon-Shiong had donated funds through nonprofit organizations to the University of Utah for the purpose of funneling those funds back into NantHealth Inc, that, as such, the Company and Soon-Shiong participated in the violation of federal tax laws—exposing the Company to possible civil and criminal liability, that the Company improperly recorded orders received from the University of Utah as GPS Cancer test orders, that, as a result, the Company reported false and inflated GPS Cancer order figures for the third quarter of 2016, and that, as a result of the foregoing, the Company’s financial statements and defendants’ statements about NantHealth Inc’s business, operations, and prospects, were materially false and misleading.
NantHealth Inc reported that its annual Total Revenue rose from $33.92 million in 2014 to $58.30 million in 2015 and that its Net Loss declined from $84.42 million in 2014 to $72.01 million in 2015.
On March 6, 2017, a news organization focused on medical industry reporting published an article alleging that NantHealth Inc founder, Patrick Soon-Shiong, had donated $12 million to the University of Utah from three different tax-exempt entities controlled by him under a contract that required the University to funnel most of that money into NantHealth Inc. The report alleged that the scheme allowed NantHealth Inc to inflate the number of test orders it reported to investors.
Shares of NantHealth Inc (NASDAQ: NH) declined from $7.14 per share on March 6, 2017 to as low as $4.54 per share on March 7, 2017.