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Robbins Arroyo LLP: Natus Medical Incorporated (BABY) Misled Shareholders According to a Recently Filed Class ActionShareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Natus Medical Incorporated (NASDAQGS: BABY) in the U.S. District Court for the Northern District of California. The complaint is brought on behalf of all purchasers of Natus securities between October 16, 2015 and April 3, 2016, for alleged violations of the Securities Exchange Act of 1934 by Natus's officers and directors. Natus designs, manufactures, and markets newborn care and neurology healthcare products and services worldwide.
View this information on the law firm's Shareholder Rights Blog: Natus Accused of Unjustifiably Touting Its Supply Contract in Venezuela According to the complaint, 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, pursuant to which Natus would receive $232.5 milion (the "Supply Contract"). On the basis of this contract, Natus subsequently issued several public statements increasing its revenue and earnings guidance for the fiscal year ending December 31, 2015. However, the complaint alleges that Natus officials failed to disclose that: (1) the Venezuelan government had failed to make tens of millions of dollars in prepayments to Natus, which were required to have been paid beginning October 2015; (2) Natus had no means to effectively enforce its rights under the Supply Contract, as Venezuela was the exclusive forum for dispute resolution; (3) Natus's receipt of revenues pursuant to the Supply Contract was contingent on the outcome of Venezuelan elections; (4) the Supply Contract was subject to foreign currency and exchange risks; (5) the Supply Contract did not have the economic benefits or certitude that Natus officials had represented; and (6) Natus was not on track to achieve the increased guidance that it represented. As a result of these misrepresentations, the complaint alleges that Natus's stock traded at artificially inflated prices, reaching an all-time high above $50 per share in intraday trading on December 18, 2015. Notably, certain of Natus's senior executives sold a total of $14.5 million worth of their personally held company stock, two of whom sold more than $10.7 million of their stock in the days following the company's positive announcements. On January 11, 2016, Natus revealed that it expected to fall short of its fourth quarter and fiscal year 2015 guidance. Then, on April 4, 2016, Natus disclosed that it did not have "any revenue associated with the Venezuela Ministry of Health contract as [it] did not receive any prepayments during the quarter." On this news, Natus's stock declined by $7.80 per share, or nearly 20%, to close at $31.84 per share on April 4, 2016. Natus Shareholders Have Legal Options Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website. Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170207006314/en/ |
