Natera, Inc. (NTRA) plunged into the current market after the company was found guilty of making false claims in an advertisement. NTRA values $30.80, losing more than 14% compared to the previous closing price. The stock closed at $35.89 at the end of the last trading session. The stock volume traded in the previous trading session was around 3.08 million shares. The current market cap of the company is about $3.72 billion.
NTRA found guilty by the court in Fake Claims
Natera, Inc. (NTRA) has found themselves in hot waters after the jury found them guilty of involving in a false advertisement. The jury reached its decision after representing the evidence that both Natera and CareDx made exaggerated claims in a recent advertisement about their involvement in and funding a scientific publication.
According to the evidence, the company’s management misled both investors and physicians about the source’s credibility. They claimed that the publication was independent while, in actuality, it was not. The court will later decide on any monetary relief if remains any.
Even though it was found to have engaged in false advertising, CareDx still claims Natera’s executives are lying about their experience. Scientists have not been able to demonstrate that Natera’s published data and test results are reliable.
A federal court recently invalidated all of CareDx’s patents against Natera in another case. Natera continues to sue CareDx for patent infringement.
NTRA: Key Financials
The company recently announced its fiscal 2021 results. The company’s revenue grew by 60% to reach $625 million. Its net loss was $472 million losing more than 105% compared to the previous year. Although, its cash and cash equivalent saw a massive rise of 73% to reach $84.39 million.
Conclusion
However, the company’s growth rate was good enough in fiscal 2021, but the current controversy will have a severe blow to its stock price in the short-run if not in the long run. After much controversy, companies may lose their consumers’ trust, severely affecting their revenue, growth rate, and stock price.
