NEW YORK, March 15, 2017 /PRNewswire/ -- WeissLaw LLP, a national class action and shareholders' rights law firm with offices in New York and Los Angeles, announces an investigation of NantHealth, Inc. ("NantHealth," or the "Company") (NASDAQ: NH), its Board of Directors, and certain Company officers for, among other things, possible breaches of fiduciary duty and violations of federal securities laws.
On March 6, 2017, following the publishing of a series of articles by STAT, a national publication focused on medical industry news, shares of NantHealth fell nearly 24%, trading for a record low of $5.50 a share. The articles alleged that Patrick Soon-Shiong, the Company's founder and CEO, violated federal tax laws and engaged in "indirect self-dealing" in connection with the September 2014 endowment of $12 million he made to the University of Utah. STAT revealed that only $2 million of the endowment was earmarked for scientific and administrative work. As part of the agreement accompanying the donation, the remaining $10 million would be spent on genetic sequencing work, with stringent requirements on the type of facility performing the sequencing, ultimately funneling back the bulk of the endowment to NantHealth in the form of genetics analysis business from the University. This had the effect of inflating the number of test orders NantHealth reported to investors by more than 50%. Consequently, the Company may have misled shareholders when it reported the tripling of gross profits and a 76% year-over-year increase in total net revenue in third quarter of 2016.
Given these facts, WeissLaw is investigating whether NH's Board made materially false and/or misleading statements, as well as failed to disclose information with regard to the Company's operations to NH shareholders. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Joshua Rubin of WeissLaw LLP at 888.593.4771, or by e-mail at [email protected].
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients. For more information about the firm, please go to: http://www.weisslawllp.com/nanthealth-inc/
SOURCE WeissLaw LLP