Natera Investors Partly Advance Suit Over Genetic Tests (1)

Natera Inc. and its leadership must face allegations that they misrepresented the efficacy of certain genetic tests, as well as sales and billing practices the diagnostics company used, a judge said.

Judge David Ezra found that the Natera shareholders sufficiently stated actionable omissions and plead loss causation stemming from the alleged misrepresentations’ impact on share prices, citing a 33% stock drop on Mar. 9, 2022 after the release of a negative short-seller report. The defendants’ motion to dismiss the investors’ proposed class action was partially granted by Ezra, who sits in the US District Court for the Western District of ...