Natera’s Genetic Test Accuracy Claims Misleading, Investors Say

Natera Inc. misled investors about the accuracy of some of its genetic tests and the sales and billing practices it relied on for growth, a new suit alleges in federal court in Texas.

The diagnostics company didn’t tell investors that its prenatal test suffered from “high rates of false positives” and a kidney transplant failure screening test wasn’t actually more accurate than its competition, according to the would-be class complaint filed in the U.S. District Court for the Western District of Texas.

“We believe the allegations are meritless,” Natera told Bloomberg Law Thursday. “We will vigorously defend our company in ...